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:

Echoic Memory

A component of sensory memory that retains auditory information for a short period after the original sound has ceased.

Auditory Stimuli

Sounds that trigger a response in the listener, processed by the auditory system.

Flashbulb Memory

A highly detailed and vivid memory of a momentous event, often retaining its clarity despite the passage of time.

Long-Term Memory

Long-term memory refers to the phase of the memory process that is capable of storing information over extended periods, from days to years, and potentially lifetimes.