Suppose the U

question 88

Multiple Choice

Suppose the U.S. economy is operating at potential output. A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

• A)no change;an increase
• B)no change;a decrease
• C)an increase;an increase
• D)a decrease;a decrease

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.

Accelerated Pace

Refers to an increased speed or rate at which activities or developments occur.

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including employees, customers, suppliers, and investors.

Conflicting Interests

Situations where different parties have goals or intentions that are incompatible or at odds with one another.