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If the Economy Is at Potential Output and the Fed

question 196

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


Definitions:

Incision and Drainage (I&D)

A medical procedure involving the cutting of the skin and the removal of fluid from a wound or an abscess.

Localized Infection

An infection that is restricted to a specific part of the body and does not spread.

Abscess

A localized collection of pus within tissues, organs, or spaces in the body, typically caused by an infection.

Exudate

Pus; the collection of purulent material in a cavity.

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