Refer to the Figure Below

question 98

Multiple Choice

Refer to the figure below.Based on the diagram, if potential output equals 8,000 and the real interest rate is 2%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output.

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

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Definitions:

Outliers

Those scores in a distribution that are noticeably much more extreme than the majority of scores. Whether a score is an outlier or not is usually an arbitrary decision made by the researcher.

Percentile

A measure indicating the value below which a given percentage of observations in a group of observations falls.

Very High

A term often used in statistics and research to describe data points or values that are significantly above the average or expected range.

Very Low

Refers to a quantitative or qualitative measure indicating a minimal level or degree of something.