If the Reserve Bank decides that it wants to lower the unemployment rate, it ________ the growth rate of aggregate demand by ________ the growth rate of money and ________ interest rates.

Question

Quizplus · Accepted Answer

To lower the unemployment rate, the Reserve Bank would aim to accelerate the growth rate of aggregate demand. This is typically achieved by accelerating the growth rate of money (increasing the money supply) and lowering interest rates to stimulate borrowing and spending.

If the Reserve Bank Decides That It Wants to Lower