« previous next »

Author Question: When would the Fed want to carry out a monetary policy that decreases aggregate demand? What will ... (Read 40 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?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Atmospheric pressure decreases as altitude increases. Atmospheric pressure decreases as altitude increases.
Transfer RNAs (tRNA) carry amino acids to the ribosome to be synthesized into proteins. Transfer RNAs (tRNA) carry amino acids to the ribosome to be synthesized into proteins.
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Foods and beverages that contain aspartame must carry a warning label Foods and beverages that contain aspartame must carry a warning label
Pineapples carry harmful insect shell insects, safe to eat? Pineapples carry harmful insect shell insects, safe to eat?
Aggregate Fruits: Blackberry Aggregate Fruits: Blackberry
Video: Blood Test Basics

For a complete list of videos, visit our video library