Exhibit 15-2 -Refer to the Graph in the Exhibit.According to Policymakers Who

question 128

Multiple Choice

Exhibit 15-2

-Refer to the graph in the exhibit.According to policymakers who favour a passive approach to policy, how will the economy attain equilibrium at potential output?  

• A) by increasing real wages, thus causing the SRAS curve to shift left
• B) by shifting the SRAS curve to the right
• C) by increasing the money supply or by increasing government spending
• D) by decreasing the money supply or by decreasing government spending

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Definitions:

Crude Death Rate

A measure of the number of deaths in a given population during a specified period, typically expressed per thousand individuals per year.

Deaths

refers to the cessation of all biological functions that sustain living organisms, marking the end of life.

Population

The total number of people or inhabitants in a particular area or country.

Urban Population

The segment of a nation's population that resides within urban areas, typically cities or towns.