Author Question: When Fed policy is being used to offset an inflationary gap, which of the following variables ... (Read 69 times)

Pineapplelove6 · **on:** Jun 30, 2018

When Fed policy is being used to offset an inflationary gap, which of the following variables increases as a result?
a. Aggregate demand.
b. Investment.
c. Net Exports.
d. Interest rates.

Question 2

If natural gas is replaced by solar power as a more efficient form of energy, we should expect _____.
a. a leftward shift of the aggregate supply curve
b. higher production prices at every output level
c. a decline in the growth of total output
d. a decrease in the stock of energy-efficient capital goods
e. an increase in total factor productivity