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

question 159

Multiple Choice

Based on the diagram, if potential output equals 8,000 and the real interest rate is 2 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)an expansionary; reduce
• C)no output; not change
• D)an expansionary; raise

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Displaced Fishermen

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Desalination

The method of extracting salt and additional minerals from ocean water to create fresh water appropriate for drinking or agricultural watering.

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A water purification method that forces water through a semipermeable membrane, removing contaminants.