Contractionary Monetary Policy to Prevent Real GDP from Rising Above

question 28

Multiple Choice

Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Autocratic Leadership

A leadership style where the leader makes decisions unilaterally without consulting others, often exerting high levels of control over team members.

Micromanages

The practice of excessively controlling or managing all aspects of work or employees’ performance, often to an unnecessary or counterproductive degree.

Independent Decisions

Choices made autonomously, without reliance on the opinions or influences of others.

Autocratic Style

A leadership approach characterized by individual control over all decisions and little input from group members, often leading to clear, quick decision-making.