In the Keynesian model, the most important influence on planned consumption is

If there is a recession, the Fed would most likely encourage banks to provide loans by:

a. buying government securities. b. raising the discount rate. c. selling government securities. d. raising the federal funds rate.

Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward