If real GDP exceeds potential GDP, to move the economy to potential GDP, the Reserve Bank
A) raises the cash rate to decrease real GDP but not potential GDP.
B) lowers the cash rate to increase potential GDP but not real GDP.
C) lowers the cash rate to decrease real GDP but not potential GDP.
D) raises the cash rate to increase potential GDP but not real GDP.
E) raises the cash rate to decrease both real GDP and potential GDP.
Correct Answer:
Verified
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A)
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i. to
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Q49: Which of the following is a problem
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