The passive approach depends on the forces of what automatic stabilizers to close a recessionary gap?
a. Aggregate Demand
b. Interest Rates
c. Short Run Aggregate Supply
d. Passive Approach depends on nothing to close recessionary gaps
c
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"The distribution of income should be determined by the government" is an example of a positive economic statement
Indicate whether the statement is true or false
For monetarists, the sole source of fluctuations in aggregate demand is ________
A) government spending and tax rates B) the velocity of money C) the supply of money D) international trade variables, i.e. exports and imports
Which of the following is NOT an important factor that affects the magnitude of the own price elasticity of a good?
A. Available substitutes B. Supply of the good C. Expenditure share D. Time
The price facing the "representative firm" falls when market supply rises.
a. true b. false