Refer to the Figure Below

question 82

Multiple Choice

Refer to the figure below.Based on the diagram, if potential output equals 8,000 and the real interest rate is 4%, 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; lower
• C)no output; not change
• D)an expansionary; raise

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Definitions:

Underlying Mental Health Conditions

Mental disorders or psychological distress that are present but not immediately noticeable, potentially influencing physical health and quality of life.

Investigate

The process of carrying out research or inquiry to gather facts and information.

Median Age

A demographic term referring to the age that divides a population into two numerically equal groups; that is, half the people are younger than this age and half are older.