If an Economy Is at Potential GDP and an Expansionary

question 2

Multiple Choice

If an economy is at potential GDP and an expansionary policy is correctly anticipated,the result will be:

• A)a short-run fall in output and employment.
• B)little or no increase in GDP.
• C)an increase in wages along with a dramatic fall in the price level.
• D)a rapidly expanding economy.
• E)a severe recession.

---

Definitions:

Habitat Isolation

A form of prezygotic barrier where two species live in different habitats and rarely, if ever, encounter each other.

Mechanical Isolation

an evolutionary mechanism that prevents species from interbreeding due to physical differences in reproductive structures.

Hybrid Inviability

A condition where hybrid offspring fail to develop or reach sexual maturity, reducing gene flow between different species or populations.

Hybrid Sterility

A condition where offspring from the cross between two different species are infertile, preventing them from producing offspring.