Refer to the Figure Below

question 88

Multiple Choice

Refer to the figure below.Based on the diagram, if potential output equals 8,000 and the real interest rate is 6%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output.

• A)a recessionary; raise
• B)a recessionary; reduce
• C)no output; not change
• D)an expansionary; raise

---

Definitions:

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mode

The value that occurs most frequently in a given data set.

Lopsided

Uneven or unbalanced, often referring to situations or structures that are disproportionately weighted to one side.

Scores

Quantitative measures or qualitative assessments used to represent an individual's performance, achievement, or capability in a specific domain.