Problem
1. (Review of Policy Perspectives) Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
2. (The Role of Expectations) Some economists argue that only unanticipated increases in the money supply can affect real GDP. Explain why this may be the case.
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.