According to the AS/AD Model, If the Economy Is in a Recession

question 234

Multiple Choice

According to the AS/AD model, if the economy is in a recession and the Fed wants to increase output and employment, it should:

• A)act to increase the money supply.
• B)act to decrease the money supply.
• C)raise interest rates.
• D)raise reserve requirements.

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Definitions:

Product Development

Also called product design; entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product’s form and features or a service’s features.

Data Use

The ways in which information is applied or utilized, often referring to the processing, analysis, and application of data to make decisions, inform strategies, or understand trends.

Financial Crimes

Illegal acts committed by individuals or organizations to obtain a financial or professional advantage.

Ethical Issues

Questions of morality and values that arise in the context of professional and personal conduct.