What Would Happen If the Fed Tried to Keep Employment

question 105

Multiple Choice

What would happen if the Fed tried to keep employment above the full-employment level?

• A) The long-run aggregate supply curve would shift to the right.
• B) The aggregate supply curve would shift downward.
• C) Unemployment would increase.
• D) The price level would increase.
• E) The aggregate demand curve would shift to the left.

---

Definitions:

Predictor Variables

Predictor variables are independent variables in statistical models that are used to predict outcomes or influences on a dependent variable.

Linear Regression Equation

A mathematical expression defining a direct relationship between a single dependent variable and several independent variables.

Best Fit

A line or curve that represents the best approximation of a set of data points, often determined by minimizing the differences between the estimated and observed values.

Variables

Elements, features, or factors that are liable to vary or change within the context of a scientific study or experiment.