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:

Croquet

A lawn game where players hit wooden or plastic balls with a mallet through hoops embedded in the grass.

Volleyball

A team sport in which two teams of six players are separated by a net, with each team trying to score points by grounding a ball on the other team's court.

Immigrant Family

Refers to a family that has moved from one country to another for reasons such as seeking better opportunities, escaping conflicts, or family reunification.

Housekeeper

An individual responsible for managing household tasks such as cleaning, cooking, and maintaining the home environment.