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.

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Definitions:

Just Compensation

The fair market value that must be paid for property taken by the government for public use, as guaranteed by the Fifth Amendment.

Proper Public Purpose

Proper public purpose is a principle stating that governmental actions and the use of public resources must aim to benefit the general public or community as a whole.

Expropriation

The act of a government taking private property for public use, with compensation provided to the owner.

Confiscation

The act of seizing property by authority, often without compensation, for legal or government use.