Based on the Diagram, If Potential Output Equals 8,000 and the Real

question 155

Multiple Choice

Based on the diagram, if potential output equals 8,000 and the real interest rate is 6 percent, then there is ________ gap and the Fed must ________ the real interest rate so that output will equal potential output.  

• A)a recessionary; raise
• B)a recessionary; reduce
• C)no output; not change
• D)an expansionary; raise

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Close Friends

Individuals with whom one shares a deep, personal connection and trust, often characterized by a strong bond and mutual support.

Two Fathers

Could refer to a familial situation where a child has two male parental figures, possibly indicating a nontraditional family structure.

Enormous Museum

A very large institution that houses and exhibits collections of artifacts, art, and cultural or historical items.

Pronoun Error

A grammatical mistake involving the incorrect use or form of a pronoun, which can lead to ambiguity or misunderstanding in communication.