If the Economy Is at Potential GDP and the Fed

question 22

Multiple Choice

If the economy is at potential GDP and the Fed makes an open market sale of government securities, in the long run the aggregate__________ curve shifts __________and the price level__________

• A) demand; leftward; falls
• B) supply; leftward; falls
• C) supply; leftward; rises
• D) demand; rightward; rises

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Definitions:

Manipulation

An attempt to influence or control the behavior or emotions of others for one’s own purposes, often without their consent.

Sexual Response Cycle

The sequence of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities, including phases like excitement, plateau, orgasm, and resolution.

Genitals

The reproductive organs, especially the external sex organs.

Engorged

Swollen with fluid or blood; typically refers to body parts that have filled with such to an extreme level.