If the Economy Is at Potential Output and the Fed

question 152

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the LONG run real GDP will likely:

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

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Definitions:

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An individual who agrees to take part in a research study or experiment without any coercion, fully understanding the nature of the research.

Spontaneous Brain Activity

Neural activity within the brain that occurs without external stimuli, often observed in resting-state functional connectivity studies.

Stimuli

External elements or occurrences that influence physical or psychological responses.

Dreams

A sequence of thoughts, images, and sensations occurring in a person's mind during sleep.