Those Who Favor a Passive Approach to Policy Think That

question 142

Multiple Choice

Those who favor a passive approach to policy think that all of the following conditions will allow the economy to bring itself out of a contractionary gap except one. Which is the exception?

• A)lower real wages
• B)a shortage of labor
• C)lower production costs
• D)a lower expected price level
• E)a rightward shift in the short-run aggregate supply curve

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Definitions:

Psychoanalysis

A therapeutic approach and theory of personality development that emphasizes unconscious motives and conflicts, originated by Sigmund Freud.

Childhood Trauma

Distressing experiences that occur during childhood, which can have long-lasting emotional and psychological effects.

Repression

In psychoanalytic theory, a mechanism of defense by means of which thoughts, impulses, or memories that give rise to anxiety are pushed out of consciousness.

Freudian Terms

Freudian Terms relate to the concepts or terminologies developed by Sigmund Freud in the field of psychoanalysis, focusing on unconscious desires, conflict resolution, and personality development.