According to Those Who Favor a Passive Approach to Policy

question 107

Multiple Choice

According to those who favor a passive approach to policy, a contractionary gap will be eliminated because

• A)prices and wages rise rapidly
• B)prices and wages are flexible
• C)the aggregate demand curve will shift to the right
• D)the economy automatically slows down
• E)the aggregate demand curve will shift to the left

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Definitions:

Pain Reliever

Medication used to alleviate pain, including over-the-counter drugs like acetaminophen and NSAIDs, as well as prescription opioids.

Delirium Tremens

A severe form of alcohol withdrawal featuring sudden and severe mental or nervous system changes.

Withdrawal Symptoms

Physical or psychological symptoms that occur after reducing or stopping the intake of a substance that has been used regularly.

Opioids

A class of drugs that includes both illegal substances like heroin and prescription pain relievers, known for their pain-relieving properties and high potential for dependence.