The Figure Below Shows the Price Level,real GDP,and the Potential

question 47

Multiple Choice

The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at:

• A)point A.
• B)point B.
• C)point C.
• D)a point to the right of point A.
• E)a point below C.

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Definitions:

Metabolic Rate

The rate at which the body uses energy, crucial for processes like breathing, circulating blood, and cell growth.

Obese People

Individuals having a Body Mass Index (BMI) of 30 or higher, indicating a high amount of body fat in relation to height.

Lean Tissue

Body tissue that is composed of muscles, organs, and bones, excluding fat, often associated with overall health and metabolic function.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, which significantly impact an individual's health and wellbeing.