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:

Maintenance of Membership

A union agreement clause requiring employees to maintain union membership for the duration of the employment contract.

Agency Shop

A workplace agreement where employees do not have to join the union, but must pay union dues since the union negotiates on behalf of all employees.

Closed Shop

A form of labor agreement in which a company agrees to hire and employ only members of a labor union.

Rand Formula

A labor union policy that mandates all workers in a bargaining unit to pay union dues, regardless of union membership, to ensure collective bargaining benefits for all.