Aggregate Demand and Supply Analysis

question 100

Multiple Choice

Aggregate Demand and Supply Analysis
-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.If there is no policy intervention,then the figure implies that when output has reached $12 trillion,the real interest rate will be ________ percent,and the inflation rate will be ________ percent.

• A)1.5;one
• B)one;zero
• C)zero;minus 2
• D)0.5;minus one
• E)2.5;three

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Definitions:

Oxygen Delivery Device

Equipment used to supply extra oxygen to individuals who are not getting enough oxygen naturally, such as nasal cannulas or masks.

Nasal Cannula

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Angina Pectoris

A condition marked by severe chest pain due to insufficient blood supply to the heart, caused by narrowing of the coronary arteries.

Indigestion

A common digestive disorder causing discomfort or pain in the stomach area, often related to eating habits or stress.