Higher potential output levels:
A) put upward pressure on real interest rates.
B) put downward pressure on real interest rates and upward pressure on inflation rates.
C) put upward pressure on real interest rates and downward pressure on inflation rates.
D) none of the answers given is correct.
Correct Answer:
Verified
Q46: The assumption that prices and wages are
Q47: Which of the following statements best describes
Q48: Increases in potential output shift:
A) the long-run
Q49: Comparing monetary and fiscal policy:
A) fiscal policy
Q50: The key part of the real business
Q52: Fiscal policy suffers from the problem of:
A)
Q53: Disinflation occurs when:
A) the inflation rate is
Q54: Monetary policy has the following advantage(s) over
Q55: Most economists attribute the Great Moderation experienced
Q56: Increases in productivity result in:
A) higher inflation
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