An open market sale of government securities by the Federal Reserve shifts the _________ reserves curve _________.
Fill in the blank(s) with the appropriate word(s).
supply of; leftward
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Which of the following countries has a flat SAS curve?
A) Brazil B) U.S. C) Argentina D) All of the above.
An individual's demand curve:
a. represents the various quantities that a consumer is willing to purchase of a good at various price levels. b. is derived from an individual's indifference curve map. c. will shift if preferences, prices of other goods, or income change. d. all of these answers are correct.
Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) lower; lower B) lower; higher C) higher; higher D) higher; lower