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Author Question: From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next ... (Read 30 times)

P68T

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on: Jun 29, 2018
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


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FergA

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


P68T

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

cpetit11

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Reply 3 on: Yesterday
Gracias!

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