Suppose the Time Required for an Economy to Self-Correct Is

question 114

Multiple Choice

Suppose the time required for an economy to self-correct is shorter than the active policy lags.Which of the following best describes the results of implementing an active policy?  

• A) Active policy should be strengthened. 
• B) Active policy will likely be destabilizing. 
• C) The aggregate demand curve will shift more rapidly than the short-run aggregate supply curve. 
• D) Active policy will work better than passive policy.

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Definitions:

Schizophrenia

A mental disorder characterized by abnormal behavior, strange speech, and a decreased ability to understand reality.

"Flattening"

The process of reducing complexity or variability in a system, concept, or visual representation, often used in the context of emotional expression or graphical design.

Emotions

Complex reactions that involve subjective experience, physiological response, and behavioral expression, often triggered by external or internal events.

Schizophrenic Disorder

A serious mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.