If the Current Equilibrium Output Level Is Above the Full-Employment

question 223

Multiple Choice

If the current equilibrium output level is above the full-employment output level,the Fed should consider

• A)selling government securities,raising the discount rate,and raising the required reserve ratio.
• B)selling government securities,lowering the discount rate,and raising the required reserve ratio.
• C)buying government securities,lowering the discount rate,and raising the required reserve ratio.
• D)buying government securities,raising the discount rate,and raising the required reserve ratio.
• E)selling government securities,raising the discount rate,and lowering the required reserve ratio.

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Definitions:

Units Of Input

Quantitative measures of the resources used in the production of goods or services.

Total Product

The total amount of goods or services produced by a firm or an economy at a given level of resource utilization.

Marginal Product

The additional output generated by employing one more unit of a specific factor of production, holding all other factors constant.