Use the Following to Answer Questions

question 43

Multiple Choice

Use the following to answer questions .
Exhibit: Economic Adjustments
-(Exhibit: Economic Adjustments) If the economy is at point b, the Federal Reserve can close the output gap

• A) by pursuing an expansionary monetary policy to raise the interest rate and decrease short run aggregate supply.
• B) by pursuing a contractionary monetary policy to drive down the interest rate and decrease aggregate demand.
• C) by pursuing an expansionary monetary policy to drive down the interest rate and decrease short run aggregate supply.
• D) by pursuing a contractionary monetary policy to raise the interest rate and reduce aggregate demand.

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Definitions:

Serous Membranes

Thin membranes that cover the walls and organs in the thoracic and abdominal cavities, producing serous fluid to lubricate and reduce friction between organs.

Mucous Membranes

Tissue linings that secrete mucus, serving as a protective barrier in various organs and cavities within the body.

Synovial Membranes

Membranes lining the joint cavities, producing synovial fluid to lubricate and nourish the joints.

Negative Pleural Pressure

The subatmospheric pressure in the pleural cavity that helps keep the lungs inflated.