In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced
A) contractionary monetary policy.
B) expansionary monetary policy.
C) irresponsible fiscal policy.
D) Keynesian fiscal policy.
A
Economics
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If demand increases in a perfectly competitive market,
a. the market price will fall b. firms already in the market will supply more output c. new firms will enter the market d. the short-run market supply curve will shift to the right e. each firm's marginal cost curve will shift to the right
Economics
In March 2015, many college students bet on the NCAA finals in dorm gambling pools. This is an example of
a. real vs. nominal GDP. b. the assumed value of household production. c. underground economic activity. d. the implicit value of leisure time. e. a "bad" versus a "good."
Economics