If the Output Is Too High,to Achieve the Medium Run

question 26

Multiple Choice

If the output is too high,to achieve the medium run equilibrium,the central bank will

• A)increases policy rate.
• B)reduces policy rate.
• C)increase money supply.
• D)increases inflation rate.

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Definitions:

Vital Inputs

Crucial resources or components required for the production process or for providing a service.

Homogenous Inputs

Inputs or resources used in production that are of the same kind and interchangeable, contributing to uniformity in the manufacturing process.

IO Perspective

Refers to the Industrial Organization perspective, which examines the behavior of firms, market structures, and their interactions within an industry.

Firm's Profitability

a measure of how effectively a company generates profit compared to its revenues, indicating its financial health and sustainability.