Using aggregate supply and demand curves drawn according to the Keynesian view, which of the following will occur if the Fed buys bonds in the open market and the economy is below full employment?
A. Aggregate demand will shift to the left and the unemployment rate will rise.
B. Aggregate demand will shift to the right and the unemployment rate will fall.
C. Aggregate demand will shift to the left and the price level will remain unchanged.
D. Aggregate demand will shift to the right and the price level will fall.
B. Aggregate demand will shift to the right and the unemployment rate will fall.
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By the year 2100, global warming may lead to
a. shifts in world rain patterns. b. disruption of agriculture. c. expanded deserts. d. coastal inundation. e. all of the above
Economic efficiency is the primary guide in answering which of the fundamental questions in a market economy?
A. What will be produced? B. How is the output to be produced? C. How can the system accommodate change? D. Who is to receive the output?