If Real GDP Exceeds Potential GDP,to Move the Economy to Potential

question 22

Multiple Choice

If real GDP exceeds potential GDP,to move the economy to potential GDP the Fed

• A)raises the federal funds rate to increase potential GDP but not real GDP.
• B)lowers the federal funds rate to decrease real GDP but not potential GDP.
• C)raises the federal funds rate to decrease real GDP but not potential GDP.
• D)lowers the federal funds rate to increase potential GDP but not real GDP.
• E)raises the federal funds rate to decrease both real GDP and potential GDP.

---

Definitions:

Backache

A common physical discomfort or pain felt in the back, often resulting from strain, tension, or injury.

Intangibility

A characteristic of services that makes them unable to be touched, seen, tasted, heard, or felt in the same manner as physical goods.

Noise-Reducing Headphones

Headphones designed to minimize ambient sounds through active or passive noise cancellation techniques.

Sleeping Amenities

Features or services provided to enhance comfort during sleep, typically offered in hotels or flights, such as beds, pillows, linens, or sleep masks.