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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.
Company Balance Sheets
A financial statement that shows an organization's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.
Sustainable Operating Earnings
The portion of a company's profit that is expected to continue in the future, excluding any one-time items or unusual income.
Big Bath Items
Large and often one-time charges taken by a company to write off or write down the value of assets, or to provide for expected future liabilities, sometimes used to manage earnings.
Restructuring
A process of reorganizing a company's structure, operations, or finances with the goal of increasing efficiency or to prepare the business for a sale, merger, or change in strategy.
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