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FIGURE 27-5 -Refer to Figure 27-5.This Economy Begins in Equilibrium with

Question 109

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FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________. A) recessionary; $5 billion B) recessionary; $10 billion C) inflationary; $5 billion D) inflationary; $10 billion E) There is no output gap. FIGURE 27-5
-Refer to Figure 27-5.This economy begins in equilibrium with FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________. A) recessionary; $5 billion B) recessionary; $10 billion C) inflationary; $5 billion D) inflationary; $10 billion E) There is no output gap. , FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________. A) recessionary; $5 billion B) recessionary; $10 billion C) inflationary; $5 billion D) inflationary; $10 billion E) There is no output gap. and real GDP equal to potential GDP (with FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________. A) recessionary; $5 billion B) recessionary; $10 billion C) inflationary; $5 billion D) inflationary; $10 billion E) There is no output gap. and FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________. A) recessionary; $5 billion B) recessionary; $10 billion C) inflationary; $5 billion D) inflationary; $10 billion E) There is no output gap. ) .Now suppose there is an increase in the money supply to $540 billion.The short-run effects of this increase lead to the opening of a(n) ________ gap of ________.


A) recessionary; $5 billion
B) recessionary; $10 billion
C) inflationary; $5 billion
D) inflationary; $10 billion
E) There is no output gap.

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