In the Short Run,lowering the Federal Funds Rate Shifts the Aggregate

question 221

Multiple Choice

In the short run,lowering the federal funds rate shifts the aggregate demand curve ________ so that real GDP ________ and the price level ________.

• A)rightward;increases;rises
• B)leftward;decreases;rises
• C)rightward;increases;falls
• D)leftward;decreases;falls
• E)rightward;decreases;rises

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Definitions:

Crime Rates

The number of crimes committed per unit of population within a specified time period.

Prison

A facility in which people are forcibly held and denied a range of personal freedoms under the authority of the state as punishment for crimes.

Moral Panic

A widespread fear, often irrational, among the general public that some evil threatens the well-being of society, typically driven by media amplification.

Control Theory

A field of study that deals with how to influence the behavior of dynamical systems through the use of feedback mechanisms.