When Aggregate Demand Decreases,the Fed Will Want to Use Its

question 70

Multiple Choice

When aggregate demand decreases,the Fed will want to use its policy tools to:

• A) keep aggregate demand lower until wages catch up.
• B) quickly bring aggregate demand back to its original position.
• C) push aggregate demand higher than it was originally to make up for lost growth potential.
• D) shift aggregate supply to left to balance with lower demand.

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Definitions:

Debit Sheet

A record listing all debit transactions, often used in accounting to monitor expenditures.

Double-Entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records, less complex than double-entry accounting.

Useful Reports

Reports that provide valuable information, aiding in decision-making or problem-solving processes.