If Potential Output Equals 8,000 and Short-Run Equilibrium Output Equals

question 3

Multiple Choice

If potential output equals 8,000 and short-run equilibrium output equals 8,500,there is a(n) ______ gap and the Bank of Canada must _______ real interest rates in order to close the gap.

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

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Definitions:

Gluconeogenesis

A metabolic pathway that results in the generation of glucose from certain non-carbohydrate carbon substrates such as lactate, glycerol, and glucogenic amino acids.

Blood Glucose Levels

The concentration of glucose present in the blood, a critical measure for managing diabetes and metabolic health.

Adenylyl Cyclase

Adenylyl cyclase is an enzyme found in many organisms that catalyzes the conversion of adenosine triphosphate (ATP) to cyclic adenosine monophosphate (cAMP), a second messenger important in many biological processes.

cAMP

Cyclic adenosine monophosphate, a second messenger important in many biological processes, including the regulation of glycogen, sugar, and lipid metabolism.