Those Who Favor a Passive Approach to Policy Think That

question 111

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 recessionary 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:

Antimony

A chemical element with the symbol Sb and atomic number 51, known for its brittle texture and silvery luster, used in alloys, flame retardants, and electronics.

Metals

Elements that are good conductors of electricity and heat, have a shiny appearance, and are malleable and ductile.

Tin

A chemical element with the symbol Sn and atomic number 50, known for its corrosion resistance and used in alloys and coatings.

Zinc

A metallic element with symbol Zn, necessary for human health and used in alloys such as brass, in galvanization, and in various chemical reactions.