In the above figure, if the economy is at equilibrium at E1, the Fed would most likely
A) attempt to lower the aggregate demand in the economy.
B) attempt to lower the price level below 120.
C) adopt an expansionary monetary policy.
D) adopt a contractionary monetary policy.
C
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If average labor productivity in two countries is the same, average living standards will be lower in the country with:
A. the smaller population. B. the larger population. C. the lower share of population employed. D. the higher share of population employed
Whenever two individuals trade with each other, one will benefit and the other will lose.
Answer the following statement true (T) or false (F)
A monopolistically competitive firm is operating at a short-run level of output where price is $21, average total cost is $15, marginal cost is $13, and marginal revenue is $13. In the short run this firm should
A. increase the level of output. B. decrease the level of output. C. make no change in the level of output. D. reduce product price.
The return that the entrepreneur can obtain in the best alternative business is called the
A) normal profit. B) economic profit. C) marginal profit. D) marginal revenue.