If the Economy Is at Potential Output and the Fed

question 95

True/False

If the economy is at potential output and the Fed increases the money supply, the aggregate demand will likely decrease in the short run.

---

Definitions:

Acetophenone

Acetophenone is an aromatic ketone, known as the simplest aromatic ketone, used as a precursor in the synthesis of fragrances and resins.

β-diketone

A type of organic compound containing two keto (carbonyl) groups separated by a carbon atom, often depicted as RC(=O)CH2C(=O)R'.

Enols

Molecules containing a hydroxyl group attached to a carbon atom that is double-bonded to another carbon atom.

Organic Product

A compound or substance resulting from the chemical reactions involving organic molecules.