If an Active Approach to Policy Is Followed,how Would an Expansionary

question 104

Multiple Choice

If an active approach to policy is followed,how would an expansionary 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 up and to the left along the short-run supply curve.

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