If the Equilibrium Real GDP Were Higher Than Potential GDP

question 33

Multiple Choice

If the equilibrium real GDP were higher than potential GDP, then a contractionary fiscal policy would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Nonverbal Message

Communication without the use of spoken language, conveyed through gestures, expressions, and body language.

White Space

The unmarked areas of a page or screen that aid in the readability and design of a document by breaking up text and elements.

Wordy Phrases

Lengthy expressions that could be more concisely stated, often making communication less effective by obscuring the main point.

Parallelism

The concurrent execution of multiple tasks or processes in computing to enhance performance.