Exhibit 15.5 -Exhibit 15.5 Depicts the Aggregate Demand Curve and the Short-Run

question 108

Multiple Choice

Exhibit 15.5

-Exhibit 15.5 depicts the aggregate demand curve and the short-run aggregate supply curve of an economy. The Fed can return the economy to its potential output in the long run by _____

• A) selling U.S. Treasury securities in the open market.
• B) lowering the discount rate.
• C) lowering the reserve requirement.
• D) buying U.S. Treasury securities in the open market.
• E) printing money.

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Definitions:

Financial Accounting

The field of accounting focused on the preparation and reporting of financial statements to external users based on historical information.

Planning

The process of creating strategies and outlining tasks to achieve a specific goal.

Directing

The process of guiding, leading, and managing employees in an organization to achieve its objectives.

Controlling

The process of monitoring, comparing, and correcting activities to meet organizational goals and objectives, often part of managerial accounting.