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Author Question: Refer to Figure 17-1. Suppose that the economy is currently at pointAon the short-run ... (Read 63 times)

nelaaney

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on: Mar 16, 2019

Question 1

Figure 17-1










Refer to Figure 17-1.  Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point B in the long run?


◦ Buy treasury bills.
◦ Sell treasury bills.
◦ Raise the discount rate.
◦ Decrease the money supply.
◦ No policy will move the economy to point B in the long run.

Question 2

Figure 17-1










Refer to Figure 17-1.  Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural rate. If the economy was to move to point C, which of the following must be true?


◦ The economy is producing a level of GDP equal to potential GDP.
◦ Aggregate demand must have decreased.
◦ Equilibrium GDP at point C must be above potential GDP.
◦ The Fed conducted contractionary policy to cause the move.
◦ The Fed sold treasury bills to cause the move.
Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by nelaaney on Mar 16, 2019

sarah_brady415

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Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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nelaaney

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Reply 2 on: Mar 16, 2019
YES! Correct, THANKS for helping me on my review

Liddy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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