A downward shift in the Fed's policy reaction function corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.
A) shift left of; movement up
B) shift left of; shift right of
C) shift right of; shift left of
D) movement up; shift right of
Correct Answer:
Verified
Q50: A decrease in interest rates by the
Q51: When actual output equals potential output there
Q52: An upward shift in the Fed's policy
Q53: The economy moves down a stationary aggregate
Q54: For a fixed inflation rate target, a
Q56: The tendency for inflation to change relatively
Q57: The aggregate demand curve shifts to the
Q58: Inflation inertia is the result of the
Q59: Inflation inertia is the tendency for inflation
Q60: A low rate of expected inflation tends
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