From an Initial Long-Run Equilibrium,if Aggregate Demand Grows More Slowly

question 227

Multiple Choice

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

• A)increase the required reserve ratio and decrease government spending.
• B)decrease government spending.
• C)decrease oil prices.
• D)decrease taxes.
• E)lower interest rates.

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Definitions:

Temperature Coefficient

A parameter that quantifies the change in a physical property of a material as the temperature changes.

Capacitance Change

A variation in the ability of a capacitor to store an electrical charge, affected by factors such as distance between plates, area of plates, and the dielectric material.

Variable Capacitors

Capacitors whose value can be changed.

Dielectric

An insulating material that can be polarized by an electric field, enhancing the capacitor's ability to store an electric charge.