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Suppose the U

question 56

Multiple Choice

Suppose the U.S.economy is operating at potential output.A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.


Definitions:

Circadian Rhythm

The internal biological clock that regulates the sleep-wake cycle and other physiological processes on a roughly 24-hour schedule.

Bright Light

Intense illumination, often used therapeutically to treat seasonal affective disorder or to adjust circadian rhythms.

Circadian Rhythm

An innate, internal method that arranges the sequence of sleep and wakefulness, occurring approximately every 24 hours.

Hypnagogic Sensations

Experiences occurring at the onset of sleep, including visual, auditory, or physical sensations that can seem vividly real.

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