Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 4%. What should the Fed do to achieve a noninflationary, full-employment level of real GDP?
A. Decrease the money supply from $225 billion to $150 billion.
B. Increase the money supply from $150 billion to $225 billion.
C. Increase the money supply from $75 billion to $150 billion.
D. Make no change in the money supply.
Answer: A
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What is meant by the term "inside lags"?
What will be an ideal response?
The Department of Justice and the Federal Trade Commission enforce antitrust laws.
Answer the following statement true (T) or false (F)
A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to
A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. C) speak in specific terms about what needs to be done. D) a and c E) b and c
Which statement about population growth and economic growth is true?
a. Population growth means more workers, which ultimately means an increase in the standard of living for the average citizen. b. Population growth will inevitably lead to slower economic growth because the quantity and quality of available land is fixed. c. Population growth can result in more scientists, engineers, and entrepreneurs whose contributions can lead to greater economic growth. d. Population growth generally has little to no impact on economic growth because it is one factor among many.