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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:

Companionate Love

An emotional state characterized by affection for those whose lives are deeply intertwined with one’s own.

Companionate Love

A type of love defined by emotional intimacy and a deep bond, often found in long-term relationships and friendships, as opposed to passionate love.

Liking

The pleasure that follows receipt of a reward.

Similarity

In perception, a principle by which we tend to group like figures, especially by color and orientation.

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