If Potential Output Equals 8,000 and Short-Run Equilibrium Output Equals

question 81

Multiple Choice

If potential output equals 8,000 and short-run equilibrium output equals 8,500, there is a(n) ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.

• A)recessionary; raise
• B)recessionary; reduce
• C)recessionary; not change
• D)expansionary; raise

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Race

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The branch of biology that studies genes, genetic variation, and heredity in organisms.

Bioethical Responsibility

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