According to the Active Policy Position, Eliminating a Contractionary Gap

question 2

Multiple Choice

According to the active policy position, eliminating a contractionary gap

• A)can only be achieved by decreasing wages
• B)requires a public policy of wage and price controls
• C)should be accomplished by stimulating aggregate demand
• D)will increase unemployment
• E)will cause a recession

Understand the effect of time on the growth of investments and savings.

Calculate the amount of principal and interest in repayments.

Use mathematical skills to solve complex financial problems without direct formulae.

Understand the concept of time value of money and its application in financial calculations.