Author Question: Those who favor a passive approach to policy often argue that changes in prices and wages will shift ... (Read 92 times)

robinn137 · **on:** Jun 30, 2018

Those who favor a passive approach to policy often argue that changes in prices and wages will shift the:
a. short-run aggregate supply curve before active policy shifts the aggregate demand curve.
b. short-run aggregate supply curve only after active policy shifts the aggregate demand curve.
c. short-run aggregate supply curve more than active policy shifts the aggregate demand curve.
d. short-run aggregate supply curve less than active policy shifts the aggregate demand curve.
e. short-run aggregate supply curve in a direction opposite the shift in the aggregate demand curve

Question 2

The _____ lag is typically longer for fiscal policy than monetary policy.
a. supply
b. cyclical
c. effectiveness
d. implementation
e. recognition