Those Who Favor a Passive Approach to Policy Often Argue

question 72

Multiple Choice

Those who favor a passive approach to policy often argue that changes in prices and wages will shift the short-run aggregate supply curve

• A)before active policy shifts the aggregate demand curve
• B)only after active policy shifts the aggregate demand curve
• C)more than active policy shifts the aggregate demand curve
• D)less than active policy shifts the aggregate demand curve
• E)in a direction opposite to the shift in the aggregate demand curve caused by active policy

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