Which of the Following Is Consistent with an Active Approach

question 13

Multiple Choice

Which of the following is consistent with an active approach to policy?

• A)The natural rate of unemployment is uncertain.
• B)Wages and prices adjust relatively quickly.
• C)The short-run aggregate supply curve is slow to shift in the presence of a recessionary gap.
• D)The size of the multiplier is irrelevant.
• E)Self-correction lags are not a problem.

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