This topic contains a solution. Click here to go to the answer

Author Question: From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next ... (Read 38 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Federal Reserve would most likely
 
  A) decrease interest rates. B) decrease income tax rates.
  C) increase interest rates. D) increase income tax rates.

Question 2

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.
 
  A) lowers; recession; raises; expansion B) raises; expansion; raises; recession
  C) raises; recession; lowers; expansion D) lowers; expansion; lowers; recession



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

FergA

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

A

Answer to Question 2

A




P68T

  • Member
  • Posts: 509
Reply 2 on: Jun 29, 2018
:D TYSM


Dominic

  • Member
  • Posts: 328
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

For a complete list of videos, visit our video library