Which of the Following Is Consistent with an Active Approach

question 58

Multiple Choice

Which of the following is consistent with an active approach to policy?

• A)The natural rate of unemployment is uncertain.
• B)Wages and prices adjust relatively quickly.
• C)The short-run aggregate supply curve is slow to shift in the presence of a contractionary gap.
• D)The size of the multiplier is irrelevant.
• E)Self-correction lags are not a problem.

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Definitions:

Random Number Intervals

The use of numbers generated randomly within specified ranges to simulate variability in statistical models or sampling.

Cumulative Probability

The probability that a variable takes on a value less than or equal to a specific value.

Interval of Random Numbers

A range within which any number has an equal chance of being selected during a random selection process.

Average Demand

The mean amount of a product or service consumed or requested by customers over a specific period.