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Exhibit 15.4 -Exhibit 15.4 Depicts Short-Run Equilibrium in an Aggregate Demand-Aggregate Supply

Question 156

Multiple Choice

Exhibit 15.4
Exhibit 15.4 -Exhibit 15.4 depicts short-run equilibrium in an aggregate demand-aggregate supply model. The Fed can return the economy to potential output in the long-run by _____ A) purchasing U.S. government securities. B) decreasing taxes. C) selling U.S. government securities. D) lowering the discount rate. E) lowering the required reserve ratio.
-Exhibit 15.4 depicts short-run equilibrium in an aggregate demand-aggregate supply model. The Fed can return the economy to potential output in the long-run by _____


A) purchasing U.S. government securities.
B) decreasing taxes.
C) selling U.S. government securities.
D) lowering the discount rate.
E) lowering the required reserve ratio.

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