If the Economy Is at Potential Output and the Fed

question 270

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the SHORT run the price level will likely:

• A)fluctuate randomly.
• B)remain the same.
• C)decrease.
• D)increase.

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Definitions:

Amphetamines

Stimulant drugs that increase activity in the brain and body, often used to treat ADHD and narcolepsy.

Observations of Behavior

Observations of behavior involve systematically recording the actions of individuals or groups to analyze and understand their conduct.

Consciousness

The awareness of internal and external stimuli, encompassing thoughts, feelings, and surroundings.

Neuroscience

The scientific study of the nervous system, including the brain, spinal cord, and neural networks, to understand the biological basis of behavior, thought, and consciousness.