Exhibit 16-3 
-In the situation shown in Exhibit 16-3, how could the Fed return the economy to potential output?
Definitions:
Erik Erickson
A developmental psychologist known for his theory on the psychosocial development of humans, identifying eight stages from infancy to adulthood.
Generativity
A concept in psychology referring to the concern for establishing and guiding the next generation, often associated with middle adulthood.
Stagnation
A period of little or no growth, development, or progress.
Object Permanence
The understanding, which develops throughout the first year, that an object continues to exist even when you cannot see it or touch it.
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