When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to ________.
A) an inflationary gap; rise
B) a recessionary gap; remain stable
C) a recessionary gap; rise
D) an inflationary gap; fall
E) a recessionary gap; fall
Correct Answer:
Verified
Q1: The federal funds rate is
A) the interest
Q5: The Federal Reserve monetary policy goals of
Q7: Which of the following is a monetary
Q8: The main goals of monetary policy include
Q9: The output gap is the
A) percentage deviation
Q10: When the output gap is positive, it
Q11: To determine whether the goal of stable
Q105: Which of the following statements are correct?
I.The
Q110: The FOMC is the
A)report the Fed gives
Q111: In the United States,
A)Congress must approve monetary
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