Contractionary Monetary Policy to Prevent Real GDP from Rising Above

question 28

Multiple Choice

Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Foster Parents

Individuals or couples who take care of and provide a temporary home for children whose biological parents are unable to do so.

Ordinal Position

The rank position of a value within a sequence where the order matters but not the absolute difference between them.

Achievement Oriented

Being focused on setting and achieving goals, often in a competitive manner.

Firstborn Child

The first child born to a couple or the first child to be born within a family or relationship.