What is a reason it might be hard for the Fed to restore aggregate demand in the face of a negative demand shock?
A) The Fed might run out of money.
B) Banks usually don't do what the Fed demands of them.
C) The Fed must operate in real time,when a lot of the data about the state of the economy are unknown.
D) The economy responds to the Fed's actions with no lag.
Correct Answer:
Verified
Q1: The economy's LRAS curve is:
A) upward sloping.
B)
Q2: The economy's AD curve is:
A) upward sloping.
B)
Q4: Which shock can the Fed deal with
Q5: Monetary policy is used to stabilize the
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