What variable naturally adjusts in the labor market


Problem

Active Versus Passive Policy According to advocates of passive policy, what variable naturally adjusts in the labor market, shifting the short-run aggregate supply curve to restore unemployment to the natural rate? Why does the active policy approach assume that the short-run aggregate supply curve shifts leftward more easily and quickly than it shifts rightward?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What variable naturally adjusts in the labor market
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