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:

Habitat

The natural environment in which a species lives, including all its living and non-living elements.

Inbreeding Avoidance

Strategies or behaviors exhibited by organisms to prevent mating with close relatives, thereby reducing the risk of detrimental genetic outcomes.

Sex-Biased Dispersal

A pattern in which one sex (either male or female) is more likely to disperse from their birth group or area than the other, often influenced by mating systems and social structure.

Passive Dispersal

The movement of organisms or seeds from one location to another without the use of energy by the organism itself, often relying on environmental factors such as wind or water currents.