Asked by Julia Herbst on Jul 08, 2024
Verified
The country of Glassen has experienced an expansionary gap for the last three years.The advocates of passive policy are likely to suggest a policy which causes _____.
A) the short-run aggregate supply to shift to the left.
B) the short-run aggregate supply to shift to the right.
C) rising prices to shift the aggregate demand to the left.
D) wages to fall relatively quickly.
E) aggregate demand to shift to the right as wages increase.
Passive Policy
An economic policy approach that involves minimal intervention by the government in the economy, allowing market forces to operate without active guidance or stimulus.
Short-run Aggregate Supply
The total production of goods and services in an economy at various price levels in a short-term period, before all production factors can be varied.
Aggregate Demand
The complete requirement for goods and services in an economy, determined at an established overall pricing level for a specific duration.
- Realize the impact of macroeconomic policies (fiscal and monetary) on aggregate demand and aggregate supply.
Verified Answer
Learning Objectives
- Realize the impact of macroeconomic policies (fiscal and monetary) on aggregate demand and aggregate supply.
Related questions
During Inflation,the Optimal Discretionary Fiscal Policy Would Be _____ ...
Given a Downward-Sloping Aggregate Demand Curve,if Short-Run Aggregate Supply Increases,real ...
Explain How an Increase in the Price Level Changes Interest ...
An Increase in Taxes Shifts the Aggregate _____ Curve to ...
The Three Main Goals of Macropolicy Are (1)________________; (2)________________;and (3)_____________