When aggregate economic activity is increasing, the economy is said to be in

The primary reason why the oversimplified formula overstates the multiplier is that it ignores price-level changes, which reduce the multiplier

a. True b. False Indicate whether the statement is true or false

A 1977 amendment to the Federal Reserve Act of 1913

a. says the Federal Reserve should only promote maximum employment b. says the Federal Reserve should only promote price stability c. says the Federal Reserve should promote price stability and maximum employment, but does not specify how the Federal Reserve should weight these goals. d. says the Federal Reserve should promote price stability and maximum employment, but specifies that it place more weight on promoting price stability.