Refer to Figure 15-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) A to B. C) B to C. D) C to B. E) C to D.
B
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Ceteris paribus, which of the following would cause a decrease in the demand for HD TVs?
a. decline in the price of HD TVs. b. increase in the price of HD TVs. c. increase in consumers' income. d. decrease in consumers' income.
The word that best describes the relationship between the required reserve ratio and the money supply is
A) direct. B) constant. C) inverse. D) roundabout.
In the open-economy macroeconomic model, the supply of loanable funds comes from
a. the sum of domestic investment and net capital outflow. b. net capital outflow alone. c. domestic investment alone. d. None of the above is correct.
Which of the following is true?
A. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time. B. As long as resources are scarce, output cannot be increased. C. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less. D. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.