Those Who Favor Active Policymaking Argue That All of the Following

question 134

Multiple Choice

Those who favor active policymaking argue that all of the following exist EXCEPT

• A) perfectly flexible wages and prices.
• B) inflation and unemployment are stable in the short run and predictable in the long run.
• C) pure competition is not typical.
• D) aggregate demand shocks can influence real GDP and unemployment.

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Definitions:

Erosion

The process by which natural forces like water, wind, ice, and gravity wear away land surfaces, redistributing the materials.

Sediment

Particles of rock and organic material that are transported and deposited by wind, water, or ice.

Reservoir

1. A lake that is created by a human-constructed dam. 2. A subsurface volume of rock that has sufficient porosity and permeability to permit the accumulation of oil or natural gas under adequate trap conditions.

Delta

A landform at the mouth of a river where it splits into several streams or channels and deposits sediment, creating a fan-shaped area.