Some Economists Contend That a Policy of Shifting the Aggregate

question 36

Multiple Choice

Some economists contend that a policy of shifting the aggregate demand curve will be costly because it produces more volatility in both the price level and output.These economists likely are advocates of ________ policy.

• A)supply-side
• B)discretionary
• C)demand-management
• D)nondiscretionary

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Definitions:

Union Representation Elections

Elections conducted to determine whether employees want to be represented by a union, often overseen by a governmental agency to ensure fairness.

First Contract Settlement

The initial agreement reached between a newly unionized employer and the union, setting the precedent for future negotiations.

New Public Management

An approach towards public administration that emphasizes efficiency, decentralization, and the adoption of private sector management practices within the public sector.

Free Market Ideas

Economic principles that advocate for minimal government intervention in the marketplace, allowing the forces of supply and demand to determine prices and production.