A Government Might Want to Reduce Aggregate Demand If It

question 149

Multiple Choice

A government might want to reduce aggregate demand if it believes that the economy is

• A) in long-run equilibrium.
• B) above the natural rate of unemployment.
• C) producing below full-employment output.
• D) expanding past its long-run capabilities.
• E) in a recession.

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Definitions:

Epiphysis

The rounded end of a long bone, which is separated from the main bone body by a growth plate in children and adolescents.

Diaphysis

The main or mid section (shaft) of a long bone, which is typically cylindrical in shape and contains the bone marrow and growth plates.

Ossification

The process by which bone is formed, renewed, and repaired in the body.

Cranium

The part of the skull that encloses the brain.