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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 ________.


Definitions:

Unfair Judgment

The act of forming an opinion or conclusion that is biased, unjust, or lacks impartiality.

Reporter

A journalist who investigates, collects, and presents information as news.

Inaccuracy

The quality of being incorrect or not precise, often leading to errors in understanding or representation.

Newsworthy

Information or events considered significant or interesting enough to be reported in the news media.

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