The long-run aggregate supply curve shows:
A. the economy's actual growth rate whether things are going well or not.
B. the economy's potential inflation rate if all is going well.
C. the economy's potential growth rate if all is going well.
D. the economy's actual inflation rate whether things are going well or not.
Ans: C. the economy's potential growth rate if all is going well.
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Which of the following is not directly counted in GDP?
A) investment expenditures B) consumer goods C) government purchases D) intermediate goods
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. buy U.S. securities b. force the Treasury to reduce the national debt c. raise the discount rate d. increase the reserve requirements