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Author Question: If the Fed's policies aim to increase aggregate demand, the Fed must fear A) recession. B) a ... (Read 76 times)

dejastew

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on: Jun 29, 2018
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.


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stallen

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

A

Answer to Question 2

A


dejastew

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Reply #2 on: Jun 29, 2018
Thank you


stallen

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Reply #3 on: Jun 29, 2018
No problemo


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