Which of the following is consistent with an active approach to policy?
a. The natural rate of unemployment being uncertain
b. Wages and prices being relatively quick to adjust
c. The short-run aggregate supply curve being slow to shift in the presence of a recessionary gap
d. The size of the multiplier being irrelevant
e. The aggregate demand curve being slow to shift in the presence of a recessionary gap
c
Economics
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With real-world examples, explain the various factors that can cause a shift in the supply curve of a commodity
What will be an ideal response?
Economics
A change in which of the following variables will have no direct effect on the level of domestic demand?
A) domestic income B) the real exchange rate C) government spending D) the interest rate (r) E) none of the above
Economics