Which of the Following Statements Supports the Passive Approach to a Recessionary

question 41

Multiple Choice

Which of the following statements supports the passive approach to a recessionary gap?  

• A) It is likely that policies will be subject to time lags. 
• B) Prolonged unemployment may cause the economy's potential real GDP to fall. 
• C) Workers' skills may grow rusty during a prolonged recession. 
• D) Unemployed workers may drop out of the labour force during a prolonged recession.

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