From an Initial Long-Run Equilibrium,if Aggregate Demand Grows Faster Than

question 254

Multiple Choice

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

• A)decrease the required reserve ratio.
• B)decrease government spending.
• C)decrease oil prices.
• D)decrease tax rates.

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Definitions:

Pleasant Consequence

A positive outcome or reward that follows a desired behavior, often used in reinforcing such behavior.

Positive Reinforcement

in behavioral psychology, it is the introduction of a rewarding stimulus following a desired behavior, encouraging its repetition.

Punish Openly

The act of enforcing a penalty or discipline in a public or transparent manner, often as a deterrent to others.

Successive Approximations

A method where a series of increasingly accurate estimates or steps lead to a desired response or outcome.