?Assume the economy is experiencing an inflationary gap, classical economists believe that:
A. ?flexible wages will restore full employment.
B. ?the federal government should decrease spending to shift the aggregate demand curve leftward.
C. ?the Federal Reserve should lower the interest rate.
D. ?the federal government should increase spending to shift the aggregate demand curve rightward.
Answer: A
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Techniques for estimating demand curves using direct observations from the marketplace are part of a family of statistical techniques referred to as:
a. legal studies. b. Econometrics. c. policy analysis. d. Economic expansion.
The Great Depression was marked by non-farm housing slumps and falling real estate prices, prompting many states to impose a moratorium on residential mortgage foreclosures
Indicate whether the statement is true or false
A time deposit with a fixed maturity date offered by banks is called a
A. savings deposit. B. checking account. C. corporate bond. D. small-denomination certificate of deposit.
An open-market purchase of securities by the Fed results in ________ in reserves and ________ in the supply of money.
A. an increase; an increase B. a decrease; an increase C. an increase; a decrease D. a decrease; a decrease