If a Passive Approach to Policy Was Followed,how Would an Expansionary

question 114

Multiple Choice

If a passive approach to policy was followed,how would an expansionary gap eventually close?

• A)Restrictive fiscal policy would be used.
• B)Restrictive monetary policy would be used.
• C)Both restrictive fiscal policy and restrictive monetary policy would be used.
• D)Inflation would cure the problem because the price level in an expansionary gap is lower than firms and workers had expected.
• E)Inflation would cure the problem because the price level in an expansionary gap is higher than firms and workers had expected.

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Definitions:

Imported Food

Food products that are produced in one country and then transported and sold in another, often raising concerns about food miles and sustainability.

Genetic Mutations

Changes in the nucleotide sequence of the genetic material of an organism, which can result in variation within the population and can be heritable.

Low Levels

Conditions or quantities that are significantly less than the average or expected amount.

Long-term Exposure

Prolonged contact with or exposure to a particular environment or substance, often leading to gradual effects on health or system function.