Suppose That GDP Is ________ Potential Output

question 49

Multiple Choice

Suppose that GDP is ________ potential output. We would expect prices to fall, money demand to fall, interest rates to fall, and total demand to ________.

• A) above; rise
• B) above; fall
• C) below; rise
• D) below; fall

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Definitions:

Delphi Technique

A method used to gather data and achieve consensus among experts through multiple rounds of questioning and feedback.

Rational Decision-Making Technique

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Project Aristotle

An initiative by Google to study and define the characteristics that lead to highly successful teams.