If the Economy Is at Potential Output and the Bank

question 37

Multiple Choice

If the economy is at potential output and the Bank of Canada increases the money supply,in the long run the price level will likely:

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

---

Definitions:

Stress

The body’s method of reacting to a condition such as a threat, challenge or physical and psychological barrier, stimulating a fight or flight response.

Blood Glucose

The concentration of glucose present in the blood, important for energy supply and metabolic regulation.

Consuming Meal

The act of eating food, which initiates the digestion process and provides the body with nutrients and energy.

Exercise

Physical activity that is planned, structured, and repetitive for the purpose of conditioning any part of the body, to improve health and maintain fitness.