From an Initial Long-Run Equilibrium,if Aggregate Demand Grows Faster Than

question 254

Multiple Choice

From an initial long-run equilibrium,if aggregate demand grows faster than long-run and short-run aggregate supply,then Congress and the president would most likely

• A)decrease the required reserve ratio.
• B)decrease government spending.
• C)decrease oil prices.
• D)decrease tax rates.

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Definitions:

Fifth Freedom

Refers to an unofficial freedom conceptualized during the Cold War, suggesting the freedom from want through economic growth and prosperity, beyond the four freedoms articulated by Franklin D. Roosevelt.

Japanese Internment

The forced relocation and confinement of Japanese-Americans to concentration camps in the western interior of the United States during World War II by order of the U.S. government.

Military Spending

Financial resources allocated by a government or state for the maintenance and operation of armed forces.

Economic Development

The process through which a nation improves the economic, political, and social well-being of its people, often through targeted policies and programs to stimulate growth and reduce poverty.