When Aggregate Demand Decreases,the Fed Will Want to Use Its

question 70

Multiple Choice

When aggregate demand decreases,the Fed will want to use its policy tools to:

• A) keep aggregate demand lower until wages catch up.
• B) quickly bring aggregate demand back to its original position.
• C) push aggregate demand higher than it was originally to make up for lost growth potential.
• D) shift aggregate supply to left to balance with lower demand.

---

Definitions:

Pedal Pulses

Pulses felt over the arteries of the feet, such as the dorsalis pedis and posterior tibial arteries, indicating blood flow.

Peripheral Circulation

The circulation of blood in the blood vessels located outside the heart and brain, often referring to the circulation in the limbs.

Ankle

A joint made up of the tibia, fibula, and talus, pivotal for supporting weight and allowing foot movements.

Superior Vena Cava

Vein that returns blood from the head and neck, upper limbs, and thorax to the right atrium.