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:

Pulmonary Trunk

The major blood vessel which splits into the left and right pulmonary arteries, carrying deoxygenated blood from the heart to the lungs.

Pulmonary Arteries

Blood vessels that carry blood from the heart to the lungs for oxygenation.

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.