If the Economy Is Producing a Real Output That Is

question 65

Multiple Choice

If the economy is producing a real output that is less than capacity output, a(n) :

• A)expansionary monetary policy could be used to decrease aggregate demand and decrease the general price level
• B)contractionary monetary policy could be used to increase aggregate demand and increase the general price level
• C)contractionary monetary policy could be used to decrease aggregate demand and decrease the general price level
• D)expansionary monetary policy could be used to increase aggregate demand and increase the general price level

---

Definitions:

Economic Trends

Patterns or movements in the economy over a period of time, often analyzed to predict future economic performance.

Regulatory Issues

Concerns related to the rules, laws, and guidelines that govern how businesses and industries operate.

Financial Projection

is an estimate of future financial outcomes for a project or company, often including income, expenses, and cash flow forecasts.

Cash Flow Estimate

An assessment of the expected amount of money coming into and going out of a business over a specific period, crucial for budgeting and financial planning.