If the Time for an Economy to Self-Correct Is Shorter

question 33

Multiple Choice

If the time for an economy to self-correct is shorter than the active policy lags,

• A)active policy should be strengthened
• B)active policy will likely be destabilizing
• C)the passive policy case is weakened
• D)the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve
• E)active policy will work better than passive policy

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