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Which of the Following Situations Is One in Which the Reserve

Question 77

Multiple Choice
Which of the following situations is one in which the Reserve Bank of Australia will potentially pursue expansionary monetary policy?

Which of the following situations is one in which the Reserve Bank of Australia will potentially pursue expansionary monetary policy?


A) Potential GDP is forecast to be higher than equilibrium GDP.
B) Potential GDP is forecast to be lower than equilibrium GDP.
C) Aggregate demand is growing too fast to keep the economy at full employment.
D) Aggregate demand is growing too slowly and the economy is in danger of producing GDP above full employment.

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