The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.Which of the following policies will allow the Fed to close the GDP gap in the long run?
A) A decrease in government spending
B) A decrease in taxes
C) A sale of U.S.government bonds
D) An increase the discount rate
E) An increase in the required reserve ratio
Correct Answer:
Verified
Q65: To eliminate a recessionary gap,the Fed can:
A)increase
Q66: When the Fed decreases the money supply:
A)aggregate
Q67: Identify the correct statement about changes in
Q68: As a result of an expansionary monetary
Q69: If investment is not sensitive to changes
Q71: If the Fed sells U.S.government securities to
Q72: If the Fed adopts a contractionary monetary
Q73: Given an upward sloping aggregate supply curve,which
Q74: An increase in investment can lead to
Q75: The figure given below depicts short-run equilibrium
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