If the Economy Is at Potential Output and the Fed

question 169

Multiple Choice

If the economy is at potential output and the Fed decreases the money supply, in the long run the price level will likely:

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

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Definitions:

Fetal Alcohol Syndrome

a disorder that results from alcohol exposure during the mother's pregnancy, causing growth, mental, and physical problems in the child.

Conception

The process of a sperm fertilizing an ovum, leading to the formation of a zygote and the beginning of pregnancy.

Apgar Scale

The Apgar Scale is a quick test performed on a newborn at 1 and 5 minutes after birth, measuring five criteria to evaluate the baby's physical condition and determine any immediate need for extra medical or emergency care.

Fetus

A developing stage of a mammal after the embryonic stage and before birth, during which significant growth and development occur.