Question 1
Other things equal, an increase in the
Z factors shifts
◦ the
AD curve to the left.
◦ the
AD curve to the right.
◦ the
AS curve to the left.
◦ the
AS curve to the right.
Question 2
The Federal Reserve's policy to "lean against the wind" means that
◦ interest rates are decreased as the economy expands.
◦ reserve requirements are decreased as the economy expands.
◦ reserve requirements are decreased significantly during an economic expansion.
◦ interest rates are increased gradually as the economy expands.