Exhibit 15.5 -Exhibit 15.5 Depicts the Aggregate Demand Curve and the Short-Run

Multiple Choice

Exhibit 15.5

-Exhibit 15.5 depicts the aggregate demand curve and the short-run aggregate supply curve of an economy. The Fed can return the economy to its potential output in the long run by _____

A) selling U.S. Treasury securities in the open market.
B) lowering the discount rate.
C) lowering the reserve requirement.
D) buying U.S. Treasury securities in the open market.
E) printing money.