If the Economy Is at Potential Output and the Fed

question 250

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the long run real GDP will likely:

• A) fluctuate randomly.
• B) remain the same.
• C) decrease.
• D) increase.

---

Definitions:

Feelings-Based Reflection

An introspective process where an individual examines their emotional responses to understand their underlying values and thoughts.

Stages of Change Model

A theoretical model describing the process by which individuals move through a series of stages when changing behavior, from precontemplation to maintenance.

Client Recognition

The process by which a patient or client acknowledges or identifies aspects related to their condition or situation, often a critical step in counseling and therapy.

Change Process

The series of steps or stages involved in moving from a current state to a desired future state, often used in the context of personal development or organizational change.