For Policymakers Who Favour an Active Approach, Why Are Public

question 9

Multiple Choice

For policymakers who favour an active approach, why are public policy changes considered necessary for curing a recessionary gap?  

• A) because the short-run aggregate supply curve will otherwise shift quickly to the right 
• B) because prices and wages are flexible downward but NOT upward 
• C) because the required decrease in output can be achieved only by shifting the AD curve 
• D) because real wages must fall during price increases rather than wait for money wages to fall

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Definitions:

REM Sleep

A phase of sleep marked by rapid eye movements, vivid dreaming, and increased brain activity.

EEG

Electroencephalography, a method used to record electrical activity of the brain through electrodes placed on the scalp.

Periodic Limb Movement

Repeated involuntary movement of the limbs, typically occurring during sleep and often associated with sleep disturbances.

Repetitive Movements

Actions that are carried out the same way repeatedly, often seen in routines or as part of certain behavioral conditions.