If the Economy Experiences an Inflationary Gap, a Contractionary Monetary

question 82

Multiple Choice

If the economy experiences an inflationary gap, a contractionary monetary policy will

• A) increase real GDP and increase the price level.
• B) increase real GDP and decrease the price level.
• C) decrease real GDP and increase the price level.
• D) decrease real GDP and decrease the price level.

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Definitions:

Inhalation

The act of breathing in; the intake of air or other substances into the lungs.

Ingestion

The process of taking food, drink, or another substance into the body through the mouth.

Reasonable Accommodations

Adjustments or modifications provided to enable people with disabilities to participate fully in an activity or place of employment.

Public Transportation

Systems of vehicles such as buses and trains that operate on fixed routes and schedules, available for use by the general public.