If the Economy Is at Potential Output and the Bank

question 157

Multiple Choice

If the economy is at potential output and the Bank of Canada increases the money supply so that actual output exceeds potential output,eventually nominal wages will:

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

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Definitions:

France

A country in Western Europe known for its history, art, fashion, and cuisine, and its capital is Paris.

President Johnson

Refers to either Lyndon B. Johnson, the 36th President of the United States, who served from 1963 to 1969, or Andrew Johnson, the 17th President, serving from 1865 to 1869.

Vietnam War

A prolonged conflict from the late 1950s to 1975 involving North Vietnam and its southern allies, known as the Viet Cong, against South Vietnam and its principal ally, the United States, with significant implications for both American and Vietnamese societies.

US Bombing Campaigns

Military strategies employed by the United States involving the extensive use of aerial bombing to achieve tactical and strategic objectives in various conflicts.