There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency

According to the classical model, changes in aggregate demand are driven by

a. changes in taxes. b. changes in borrowing and lending. c. changes in fiscal policy. d. demand curve to the left and increases the price level.

Answer the following questions true (T) or false (F)

1. In reality, the Fed is unable to use monetary policy to keep real GDP exactly at its potential level. 2. The Fed can use contractionary monetary policy in an attempt to keep inflation from increasing. 3. The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand.