​ Assume the Economy Is in Short-Run Equilibrium at a Real

question 77

Multiple Choice

​ Assume the economy is in short-run equilibrium at a real GDP above its potential real GDP. According to classical theory, which of the following policies should be followed?

• A) ​The Federal Reserve should use open market operations and buy U.S. government securities.
• B) ​The Federal Reserve should not follow a fixed rule.
• C) ​The federal government should cut taxes.
• D) ​Fiscal policy and monetary policy should not be activist.

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Definitions:

Family Participation

involves the active involvement and engagement of family members in the care, decision-making, and support processes for a family member.

Culturally Diverse Area

A region characterized by the presence of multiple cultural groups and identities, often leading to a rich blend of traditions, languages, and social practices.

Culturally Sensitive

Acknowledging and respecting the beliefs, practices, and needs of people from diverse cultural backgrounds in service provision.

Emergency Department

A specialized department in a hospital that provides immediate treatment for acute illnesses and traumatic injuries.