This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the short-run equilibrium output of the United States exceeds the potential output, the Fed: a. ... (Read 114 times)

daltonest1984

  • Hero Member
  • *****
  • Posts: 536
on: Jun 30, 2018
If the short-run equilibrium output of the United States exceeds the potential output, the Fed:
 a. employs an active monetary policy to close a recessionary gap.
  b. employs an active monetary policy to close an expansionary gap.
  c. relies on a passive approach to close a recessionary gap.
 d. relies on a passive approach to close an expansionary gap.
 e. employs an expansionary fiscal policy.

Question 2

The country of Glassen has experienced an expansionary gap for the last three years. The advocates of passive policy are likely to suggest a policy which causes _____.
 a. the short-run aggregate supply to shift to the left.
 b. the short-run aggregate supply to shift to the right.
 c. rising prices to shift the aggregate demand to the left.
 d. wages to fall relatively quickly.
 e. aggregate demand to shift to the right as wages increase.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dudman123

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

a


daltonest1984

  • Hero Member
  • *****
  • Posts: 536
Reply #2 on: Jun 30, 2018
Correct answers!


dudman123

  • Sr. Member
  • ****
  • Posts: 304
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

The United States and Its Territories, 1787–1802 The United States and Its Territories, 1787–1802
Neuronal action potential. Neuronal action potential.
The voltage-gated channel cycles during an action potential The voltage-gated channel cycles during an action potential
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
The Ames test, which screens compounds for potential mutagenicity The Ames test, which screens compounds for potential mutagenicity
Survivorship curves for people in the United States in the early 20th and early 21st centuries Survivorship curves for people in the United States in the early 20th and early 21st centuries
Video: Apicomplexan life cycle Animation

For a complete list of videos, visit our video library