From an initial long run equilibrium if aggregate

93) From an initial long
-
run equilibrium, if aggregate demand grows more slowly than long
-
run
and short - run aggregate supply, then Congress and the president would most likely
A) decrease oil prices.
B) increase the required reserve ratio and decrease government spending.
C) decrease government spending.
D) lower interest rates.
E) decrease taxes.
Answer: E
93)
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Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
94) Which of the following would be most likely to induce Congress and the president to conduct
expansionary fiscal policy? A significant
94)
Page Ref: 947 - 948/565 - 566
Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
95) If real GDP exceeded potential real GDP and inflation was increasing, which of the following
would be an appropriate fiscal policy?
95)
Page Ref: 948/566
Learning Outcome: Macro - 12: Explain how monetary policy influences interest rates, aggregate demand, real
GDP and inflation.
96) From an initial long - run equilibrium, if aggregate demand grows faster than long - run and
short - run aggregate supply, then Congress and the president would most likely
96)
Page Ref: 948/566
Learning Outcome: Macro - 6: Explain the aggregate supply - aggregate demand model.
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