If Real GDP Exceeded Potential Real GDP and Inflation Was

question 12

Multiple Choice

If real GDP exceeded potential real GDP and inflation was increasing,which of the following would be an appropriate fiscal policy?

• A)a decrease in the money supply and an increase in the interest rate
• B)an increase in government spending
• C)an increase in taxes
• D)an increase in oil prices

---

Definitions:

Intercellular Junction

Specialized structures that connect adjacent cells together, facilitating communication and the passage of molecules between cells.

Small Molecules

Organic compounds with low molecular weight, often used in pharmacology for their ability to modulate biological processes.

Desmosome Junctions

Cell structures specialized for cell-to-cell adhesion, particularly in tissues subjected to mechanical stress, binding cells together to form a strong layer or sheet.