If an Active Approach to Policy Is Followed,how Would an Expansionary

question 104

Multiple Choice

If an active approach to policy is followed,how would an expansionary gap eventually close?

• A)The aggregate demand curve would shift rightward.
• B)The aggregate demand curve would shift leftward.
• C)The short-run aggregate supply curve would shift rightward.
• D)The short-run aggregate supply curve would shift leftward.
• E)There would be a movement up and to the left along the short-run supply curve.

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Definitions:

Memory Reconstruction

The process of piecing together memories from elements stored across different parts of the brain during recall, which can sometimes lead to inaccuracies.

Keyword Method

A mnemonic technique that involves associating a new word or information with a similar-sounding keyword to facilitate recall.

Acrostics

An artistic work like a poem or a puzzle where select letters within each line spell out distinct words or messages.

Method of Loci

A mnemonic technique that involves associating information to be remembered with specific physical locations.