This topic contains a solution. Click here to go to the answer

Author Question: For those who favor an active approach, public policy changes are necessary to cure a recessionary ... (Read 70 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
For those who favor an active approach, public policy changes are necessary to cure a recessionary gap because:
 a. the short-run aggregate supply curve will otherwise shift quickly to the right.
 b. prices and wages are flexible downward but not upward.
 c. the required decrease in output can be achieved only by shifting the aggregate demand curve.
 d. real wages must fall in order to increase aggregate supply in the economy.
 e. falling money wages will cause the AD curve to shift leftward unless policy counters this movement.

Question 2

According to the active policy approach, the elimination of a recessionary policy _____.
 a. can only be achieved by decreasing wages
 b. requires a public policy of wage and price controls
 c. should be accomplished by stimulating aggregate demand
  d. will increase unemployment
 e. will cause a recession



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

d

Answer to Question 2

c




kshipps

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
Excellent


JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

For a complete list of videos, visit our video library