Reducing aggregate demand to fight inflation will cause higher unemployment.
Answer the following statement true (T) or false (F)
True
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The United States has net exports of -$350 billion and the private sector balance is -$400 billion. What is the government sector balance?
What will be an ideal response?
C = 2,800 + 0.9y
I = 750 G = 1,200 NX = 150 Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)? What will be an ideal response?
If the Fed purchases $1 million worth of securities and the required reserve ratio is 8%, by how much will deposits increase (assuming no change in excess reserves or the public's currency holdings)?
A) rise by $1 million B) decline by $1 million C) rise by $8 million D) rise by $12.5 million
A change in which of the following causes a shift in the IS curve?
A) autonomous investment B) autonomous net exports C) taxes D) all of the above E) none of the above