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If the Economy Is at Potential Output and the Fed

question 170

Multiple Choice

If the economy is at potential output and the Fed decreases the money supply, in the SHORT run the price level will likely_____ and real GDP will likely_____ .


Definitions:

Oral

Pertaining to the mouth or spoken words; used in communication through speech rather than written form.

Immediate Feedback

Quick response to a message or action, allowing for rapid adjustment and improvement.

Oral Medium

A channel of communication that involves conveying messages or information through spoken words, in contrast to written or visual mediums.

Written Medium

A form of communication that involves the use of written language to convey messages or information.

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