Suppose That,in an Economy,ADI = 800 + 0

question 51

Multiple Choice

Suppose that,in an economy,ADI = 800 + 0.9Y - 20,000r,and the central bank acts according to the following monetary policy rule:
If inflation is 2%,the central bank will set a real interest rate of ________%,and short-run equilibrium output will be equal to _________.

• A) 0;8,000
• B) 2;4,000
• C) 2;6,000
• D) 2.5;3,000
• E) 2.5;8,000

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Definitions:

Human Rights

Universal rights that are believed to belong to all individuals, including civil, political, economic, social, and cultural rights, regardless of nationality, race, sex, ethnicity, religion, or any other status.

Isolationism

A policy of remaining apart from the affairs or interests of other groups, especially the political affairs of other countries.

Geographic Distance

The physical space between two or more points on the earth's surface, often affecting communication, transport, and social relationships.

Director of National Intelligence

The United States government official tasked with overseeing and coordinating the national intelligence activities across various agencies to ensure the country's national security and intelligence matters are properly integrated.