According to the Passive Policy Maker's Position,an Expansionary Gap Will

question 126

Multiple Choice

According to the passive policy maker's position,an expansionary gap will be eliminated because

• A)the short-run aggregate supply will shift to the left
• B)the short-run aggregate supply will shift to the right
• C)rising prices will shift the aggregate demand to the left
• D)wages will fall relatively quickly
• E)aggregate demand will shift to the right as wages increase

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Definitions:

Credit Terms

The conditions under which a seller extends credit to a buyer, including payment deadlines, interest rates, and discounts for early payments.

Invoice Discount

A reduction in the billed price granted to customers, often used as an incentive for early payment.

Credit Terms

The agreement between a buyer and a seller that outlines the payment terms for goods or services, including the due date and any interest or penalties for late payment.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and shipping costs once the goods leave the seller's premises.