From an initial long run equilibrium if aggregate demand grows more slowly than

From an initial long run equilibrium if aggregate

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93) From an initial long-run equilibrium, if aggregate demand grows more slowly than long-runand 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) Page Ref: 947 - 948/565 - 566 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 conductexpansionary 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 followingwould 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 andshort-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. 22
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