From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Federal Reserve would most likely

The U.S. central bank ________

A) usually raises taxes to stabilize a slowing economy B) encourages higher savings rates by raising the national sales tax C) is known as the Federal Reserve D) all of the above E) none of the above

The demand for a resource rises as

A. its productivity rises and the relative prices of substitutable resources rise. B. its productivity rises and prices of substitutable resources fall. C. its productivity falls and the relative prices of substitutable resources fall. D. its productivity falls and prices of substitutable resources fall.