When Output Is Below Potential and the Policy Rate Has

question 37

Multiple Choice

When output is below potential and the policy rate has hit the floor of zero,if policymakers do nothing,output will ________ and inflation will ________.

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

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Definitions:

Introvert Temperament

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often preferring solitary or calm environments.

Middle-Class Values

A set of social and cultural beliefs often associated with the middle class, such as the importance of education, hard work, responsibility, and the pursuit of happiness.

Terminal Values

Fundamental beliefs or goals that an individual strives to achieve over a lifetime.

Affiliation Needs

Occur in people who want to be accepted and liked by others.