If the Fed's policies aim to increase aggregate demand, the Fed ...

[dejastew]

If the Fed's policies aim to increase aggregate demand, the Fed must fear
 
  A) recession.
  B) a supply shock that increases aggregate supply.
  C) a supply shock that decreases potential GDP.
  D) stagflation.
  E) inflation.

Question 2

The short-run Phillips curve tradeoff becomes less favorable if either
 
  A) the expected inflation rate or the natural unemployment rate increases.
  B) potential GDP or the natural unemployment rate increases.
  C) potential GDP or the natural unemployment rate decreases.
  D) the level of real GDP decreases or the natural unemployment rate decreases.
  E) the expected inflation rate increases or the natural unemployment rate decreases.

[stallen]

Answer to Question 1

A

Answer to Question 2

A

[dejastew]

Thank you

[stallen]

No problemo