Which of the Following Statements Supports the Passive Approach to Close

question 135

Multiple Choice

Which of the following statements supports the passive approach to close a recessionary gap?

• A)It is likely that policies will be subject to time lags.
• B)Prolonged unemployment may cause the economy's potential real GDP to fall.
• C)Workers' skills may grow rusty during a prolonged recession.
• D)It is likely that unemployed workers will drop out of the labor force.
• E)Firms may neglect their capital stock during a prolonged recession.

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Definitions:

Proposals

Documents or presentations offering a plan or suggestion, often seeking approval or support for action.

Sampling Bias

A statistical error that occurs when a sample is not representative of the population from which it is drawn, potentially leading to distorted results.

Survey

A method of gathering information by asking a series of questions from a group of people to collect data.

Proposals

Formal suggestions or plans put forward for consideration or discussion by others.