If the Economy Is at Potential Output and the Fed

question 33

Multiple Choice

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

• A)shift to the left.
• B)remain the same.
• C)increase.
• D)decrease.

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Definitions:

Workable Goal

A realistic and achievable objective, often set in therapeutic, personal, or professional contexts to ensure progress and success.

Past-Exception Question

A question used in therapy to help clients identify times in the past when their problem did not occur, emphasizing their ability to overcome difficulties.

Miracle Question

A solution-focused technique that asks clients to envision how their life would change if a miracle solved their biggest problem overnight.

Double-Sided Reflection

In motivational interviewing, a technique that acknowledges what a client has said but also introduces an alternative perspective to consider.