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:

Nit Comb

A fine-toothed comb designed for the removal of lice eggs (nits) from human hair.

Human Organ

Any part of the body that performs a specific function or group of functions, such as the heart, liver, or lungs.

Nailbrush

A small brush used for cleaning the nails and removing dirt from underneath the fingernails and toenails.

Fingernail

The hard, protective covering on the upper surface of the ends of fingers, made of a protein called keratin.