Actual real GDP is greater than potential real GDP.  In order to close this gap the Federal Reserve should

You transfer $800 from your checking account into your savings account. This causes M1 to [value1] and M2 to [value2].

If the Federal Reserve targets the interest rate and the money demand curve shifts to the left, then the Federal Reserve [value1] maintain the interest rate target and the quantity of the money supply [value2].

The required reserve ratio equals [r] percent. The Fed buys $[A] million in U.S. government securities. The maximum amount the money supply can change for the banking system is $____. Enter a value. Do not include the “$” sign. Round to two decimal places.

If the current account is in deficit, we know the [value1] is in [value2].

If actual real GDP is greater than potential real GDP by $500 and the marginal propensity to save if 0.20, then in order to close this gap, the government [value1] taxes by $[value2].

Quantity of labor(workers)   Output(groomings) 1 15 2 28 3 39 4 48 5 56 6 62 7 66 8 69 Diego’s Dog Grooming is a perfectly competitive firm charging $4.50 per dog grooming. Diego’s Dog Grooming has the total and marginal product of labor schedules in the above table and can hire workers from a perfectly competitive labor market for $27 per hour. The profit-maximizing level of employment for Diego’s Dog Grooming is [value] workers.

If the financial account is in deficit, we know the [value1] is in [value2].

A decrease in the equilibrium quantity of labor and a decrease in the equilibrium wage rate is a result of a(n) Choose all that apply.

Using the complex AD/AS model, from an initial long-run equilibrium, if aggregate demand grows more quickly than long-run and short-run aggregate supply, then the Fed would most likely