What Would Happen If the Fed Tried to Keep Employment

question 105

Multiple Choice

What would happen if the Fed tried to keep employment above the full-employment level?

• A) The long-run aggregate supply curve would shift to the right.
• B) The aggregate supply curve would shift downward.
• C) Unemployment would increase.
• D) The price level would increase.
• E) The aggregate demand curve would shift to the left.

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