If the Economy Is at Potential GDP and the Fed

question 222

Multiple Choice

If the economy is at potential GDP and the Fed increases the quantity of money, then

• A) potential GDP rises.
• B) real GDP rises temporarily above potential GDP.
• C) real GDP rises permanently above potential GDP.
• D) potential GDP and real GDP both decrease.

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Definitions:

Protect

To legally defend or safeguard an individual, group, or entity from harm or legal infringement.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform international sales law.

International Sales

The process of selling goods or services to customers in different countries, subject to international trade laws and agreements.

Obligations

Obligations or commitments required by law, agreement, or moral principles that one entity must fulfill towards another.