According to Policymakers Who Favour a Passive Approach to Policy

question 86

Multiple Choice

According to policymakers who favour a passive approach to policy, why will a recessionary gap be eliminated by a passive approach?  

• A) because prices and wages will rise rapidly 
• B) because prices and wages are flexible 
• C) because the aggregate demand curve will shift to the right 
• D) because the aggregate demand curve will shift to the left

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Definitions:

Collectivist Cultures

Societies that emphasize the needs and goals of the group over individual desires or ambitions.

Social Roles

Expected behaviors and responsibilities assigned to individuals based on their position or status within a social group or society.

Interdependence

A condition where individuals or groups are mutually reliant on each other, often seen in social, economic, and ecological contexts.

Social-Cognitive Theorists

Psychologists who study how people learn by observing others and how they interpret and model their behaviors based on their beliefs.