Answer the following questions true (T) or false (F)

1. The Federal Reserve can combat an inflationary gap in the economy by buying government securities in the nation's capital markets.

2. An increase in aggregate demand in the normal range of the economy's aggregate supply curve will increase the general price level in the economy.

3. The goal of macroeconomic policy is to combat inflationary and recessionary gaps which exist in the nation's money market.


1. TRUE
2. TRUE
3. FALSE

Economics

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