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Figure 26-11 -Refer to Figure 26-11. in the Dynamic Model of AD-AS

Question 143

Multiple Choice

Figure 26-11 Figure 26-11 -Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely A) increase interest rates. B) decrease interest rates. C) not change interest rates. D) decrease the inflation rate.
-Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely


A) increase interest rates.
B) decrease interest rates.
C) not change interest rates.
D) decrease the inflation rate.

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