Shocks to Aggregate Demand ______ Require the Fed to Choose

question 66

Multiple Choice

Shocks to aggregate demand ______ require the Fed to choose between inflation and output stability; shocks to aggregate supply ______ require the Fed to choose between inflation and output stability.

• A)do; do
• B)do; do not
• C)may or may not; may or may not
• D)do not; do

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Definitions:

Ledger

A book or collection of financial accounts where all transaction records are summarized and recorded.

Journal

A book or digital record where all financial transactions are initially recorded in chronological order before being posted to accounts in the ledger.

Debit

A bookkeeping record that leads to either a rise in assets or a fall in liabilities in a firm's balance sheet.

Note Payable

An official pledge in writing to return a specified sum of cash, often with added interest, on a set future date.