When using the Fed model to diagnose the economy, if the output gap has shifted without much movement in the real interest rate, then the economy has been hit by _____ shock.
A) an inflation
B) a financial
C) a supply
D) a spending
Correct Answer:
Verified
Q94: When a supply shock causes higher inflation
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Q97: When using the Fed model to diagnose
Q98: When using the Fed model to diagnose
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Q101: Define the Fed model.
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Q104: Graphically depict how spending shocks affect the
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