Exhibit 15.4 -Exhibit 15.4 Depicts Short-Run Equilibrium in an Aggregate Demand-Aggregate Supply

question 156

Multiple Choice

Exhibit 15.4

-Exhibit 15.4 depicts short-run equilibrium in an aggregate demand-aggregate supply model. The Fed can return the economy to potential output in the long-run by _____

• A) purchasing U.S. government securities.
• B) decreasing taxes.
• C) selling U.S. government securities.
• D) lowering the discount rate.
• E) lowering the required reserve ratio.

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Definitions:

George H.W. Bush

The 41st President of the United States (1989–1993), known for his leadership during the Gulf War and his significant impact on foreign policy.

Categorical Data

Data that can be divided into specific groups or categories according to particular qualitative properties.

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A survey to collect data on the entire population.