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Author Question: If a passive approach is followed in closing an expansionary gap, _____. a. restrictive fiscal ... (Read 30 times)

TFauchery

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on: Jun 30, 2018
If a passive approach is followed in closing an expansionary gap, _____.
 a. restrictive fiscal policy would be used
 b. restrictive monetary policy would be used
 c. the short-run aggregate supply curve would shift to the right
  d. the price level would decrease in the long run
 e. an economy would experience inflationary pressure

Question 2

If an active approach is followed in closing an expansionary gap, _____.
 a. the aggregate demand curve would shift rightward
 b. the aggregate demand curve would shift leftward
 c. the short-run aggregate supply curve would shift rightward
 d. the short-run aggregate supply curve would shift leftward
 e. there would be a movement up and to the left along the short-run supply curve


ashely1112

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Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

b


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