Suppose Aggregate Demand Fell

question 85

Multiple Choice

Suppose aggregate demand fell. In order to stabilize the economy, the government might

• A)increase the money supply.
• B)decrease government expenditures.
• C)increase taxes.
• D)do nothing.

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Definitions:

Pons

A part of the brain located in the brainstem, critical for relaying messages between the brain and the spinal cord and regulating sleep.

Reticular Formation

A network of nerves in the brainstem that plays a key role in controlling arousal and alertness.

Afferent Neurons

Neurons that transmit messages from sensory receptors to the spinal cord and brain; also called sensory neurons.

Efferent Neurons

Neurons that transmit messages from the brain or spinal cord to muscles and glands; also called motor neurons.