If Potential Output Equals 3,000 and Short-Run Equilibrium Output Equals

question 78

Multiple Choice

If potential output equals 3,000 and short-run equilibrium output equals 3,500, there is a(n) ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.

• A)recessionary; raise
• B)recessionary; reduce
• C)recessionary; not change
• D)expansionary; raise

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Definitions:

Exposure Therapy

A treatment method in psychological therapy that involves the controlled exposure of a patient to a feared object, situation, or activity to overcome their anxiety or distress.

Biomedical Therapies

Treatments for psychological disorders that involve altering brain chemistry with drugs, physical intervention (e.g., surgery), or other direct forms of intervention.

Eclectic Therapy

A therapeutic approach that incorporates a variety of therapeutic principles and philosophies to tailor treatment to individual client needs.

Psychotherapy

A general term for treating mental health problems by talking with a psychiatrist, psychologist, or other mental health provider.