If the Advice of Those Who Favor a Passive Approach

question 30

Multiple Choice

If the advice of those who favor a passive approach to policy is correct,how would a recessionary gap eventually close?

• A)The aggregate demand curve would shift rightward.
• B)The aggregate demand curve would shift leftward.
• C)The short-run aggregate supply curve would shift rightward.
• D)The short-run aggregate supply curve would shift leftward.
• E)There would be a movement upward along the aggregate demand curve.

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