From an Initial Long-Run Macroeconomic Equilibrium,if the Federal Reserve Anticipated

question 271

Multiple Choice

From an initial long-run macroeconomic equilibrium,if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply,then the Federal Reserve would most likely

• A)increase income tax rates.
• B)decrease income tax rates.
• C)increase interest rates.
• D)decrease interest rates.

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Definitions:

Weighted Average

A computation that considers the different levels of significance of the figures in a collection of data, giving greater emphasis to certain numbers over others.

FIFO

An inventory valuation method that assumes the first items purchased are the first items sold, standing for First-In, First-Out.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are recorded as sold first.

LIFO

"Last In, First Out," an inventory valuation method where the last items to be added to inventory are the first ones used or sold.