If an Economist Who Favors a Passive Approach Observes a Drop

question 103

Multiple Choice

If an economist who favors a passive approach observes a drop in real GDP caused by a decrease in aggregate demand,she is most likely to think that

• A)the economy will recover by itself before discretionary policy can correct the situation
• B)discretionary policy will correct the situation before the economy recovers by itself
• C)the imposition of policy rules will correct the situation before the economy recovers by itself
• D)aggregate supply will decrease to compensate for the decrease in aggregate demand
• E)the economy will not recover by itself

---

Definitions:

Vicarious Liability

The concept of laying responsibility or blame upon one person for the actions of another.

Intentional Torts

Intentional torts refer to acts committed by an individual with the intention of causing harm to another person, such as assault, battery, and false imprisonment.

Actual Notice

A legal concept indicating that an individual has been directly informed about a matter or event, making them aware of it.

Certified Mail

A postal service offering that provides the sender with a mailing receipt and electronic verification that an article was delivered or that a delivery attempt was made.