When the Fed Enacts Monetary Policy, in the Short Run

question 24

Multiple Choice

When the Fed enacts monetary policy, in the short run it changes

• A) both the AD and SAS curves.
• B) the SAS curve.
• C) the AD curve.
• D) potential GDP.

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Definitions:

"g" Factor

A theoretical construct suggesting that a general factor of intelligence underlies individual abilities in logical reasoning, problem-solving, and knowledge acquisition.

Spearman

Charles Spearman was an English psychologist who is best known for his work in statistics and the theory of general intelligence.

Crystallized Intelligence

The ability to use learned knowledge and experience.

Acquired Skills

Abilities or expertise developed over time through practice and learning, as opposed to those that are innate or inherited.