d. 56158.8 46. In the Keynesian model a recessionary gap is caused '03 a. high prices b. a high level of unemployment c. a low level of aggregate demand d. a high level of aggregate demand 47. When there is a recessionary expenditure gap in the economy the level of output in the economy a. Is equal to potential GDP or the LRAS level of output b. is more than the potential GDP or the LRAS level of output c. is less than potential GDP or the LRAS level of output d. is less than what demanded 48. The most important policy tool that the Fed uses to change the money supply in the economy a. is the discount rate b. are Open Market operations c. are Reserve Requirements d. are interest rates 49. Federal Reserve notes are a. paper currency b. travelers' checks c. Treasury (US government) bonds d. checks issued by the U.S. government) 50. The most Important policy-making body of the Fed a. are the Federal Reserve banks b. are the presidents of the regional reserve banks c. is the Federal Open Market Committee (FOMC) d. is the New York Fed @