Author Question: If there is currently a recessionary gap in the economy the Fed could work toward recovery by ... (Read 46 times)

mspears3 · **on:** Jun 30, 2018

If there is currently a recessionary gap in the economy the Fed could work toward recovery by increasing the money supply and decreasing the interest rate.
a. True
b. False
Indicate whether the statement is true or false

Question 2

According to the traditional classical school of thought, aggregate supply is vertical both in the short run and in the long run.
a. True
b. False
Indicate whether the statement is true or false