When would the Fed want to carry out a monetary policy that decreases aggregate demand?
What will be an ideal response?
The Fed wants to decrease aggregate demand when it is worried about inflation, that is, when there is an inflationary ga
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Governance mechanisms are designed
a. to increase contracting costs b. to resolve post-contractual opportunism c. to enhance the flexibility of restrictive covenants d. to replace insurance e. none of the above
This table shows the price-level adjustment as compared to the United States. CountryPrice-Level AdjustmentAustralia-0.50China0.25Mexico0.34United States0.00According to the information in the table shown, if someone were to make $35,000, she would be able to buy the most goods and services if she lived in:
A. China. B. Australia. C. the United States. D. Mexico.
Hiring a sports celebrity to advertise a car dealership is a way of:
A. a waste of the dealership's money because celebrities aren't car experts. B. statistically discriminates potential buyers who like sports. C. screening those who aren't willing to pay as much for a car. D. signaling the quality of the cars because it is costly to hire that celebrity.
What would happen to the short-run and long-run aggregate supply curves if the capital stock grew and available supplies of natural resources expanded over the same period of time?