« previous next »

Author Question: When would the Fed want to carry out a monetary policy that decreases aggregate demand? What will ... (Read 63 times)

urbanoutfitters

  • Hero Member
  • *****
  • Posts: 530
on: Jun 29, 2018
When would the Fed want to carry out a monetary policy that decreases aggregate demand?
 
  What will be an ideal response?

Question 2

________ increases potential GDP.
 
  A) A decrease in the money wage rate
  B) A recessionary gap
  C) A recession
  D) An increase in the amount of human capital
  E) An increase in aggregate demand


jomama

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

The Fed wants to decrease aggregate demand when it is worried about inflation, that is, when there is an inflationary ga

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
The growth in demand for energy use is met by burning fossil fuels The growth in demand for energy use is met by burning fossil fuels
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
International Economics: Theory and Policy (10th Edition) International Economics: Theory and Policy (10th Edition)
The original Supply and Demand graph The original Supply and Demand graph
When a 2.75-kg fan, having blades 18.5 cm long, is turned off, its angular speed decreases ... When a 2.75-kg fan, having blades 18.5 cm long, is turned off, its angular speed decreases ...
Video: Miller's reaction chamber experiment Animation

For a complete list of videos, visit our video library