Question 1 What generally is best to increase aggregate demand or GDP? • a. Lots of imports to the U.S. • b. An exchange rate which more Dollars are exchanged with fewer Euros. • C. An exchange rate which more Euros are exchanged with fewer Dollars. • d. A Strong dollar Question 2 If the economy were at "D" and a strong Monetary policy of selling bonds and raising interest rates were instituted, what is there a danger of? Short-term Long-Run Aggregate Supply Aggregate Supply A E D В F Real GDP 1 2 3 • a. Recession • b. Nothing, we're OK! • . Stagflation • d. Inflation Price Level B.

Question 1 What generally is best to increase aggregate demand or GDP? • a. Lots of imports to the U.S. • b. An exchange rate which more Dollars are exchanged with fewer Euros. • C. An exchange rate which more Euros are exchanged with fewer Dollars. • d. A Strong dollar Question 2 If the economy were at "D" and a strong Monetary policy of selling bonds and raising interest rates were instituted, what is there a danger of? Short-term Long-Run Aggregate Supply Aggregate Supply A E D В F Real GDP 1 2 3 • a. Recession • b. Nothing, we're OK! • . Stagflation • d. Inflation Price Level B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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