-If the economy's potential output is $550 billion,the monetary authorities should seek to:
A)establish the money supply at $50 billion
B)establish the money supply at $80 billion
C)shift the aggregate supply curve to the left
D)establish the equilibrium interest rate at 3 percent
E)shift the aggregate supply curve to the right

Question

-If the economy's potential output is $550 billion,the monetary authorities should seek to:
A)establish the money supply at $50 billion 
B)establish the money supply at $80 billion 
C)shift the aggregate supply curve to the left 
D)establish the equilibrium interest rate at 3 percent 
E)shift the aggregate supply curve to the right

Quizplus · Accepted Answer

The Answer of 
-If the economy's potential output is $550 billion,the monetary authorities should seek to:
A)establish the money supply at $50 billion 
B)establish the money supply at $80 billion 
C)shift the aggregate supply curve to the left 
D)establish the equilibrium interest rate at 3 percent 
E)shift the aggregate supply curve to the right

-If the Economy's Potential Output Is $550 Billion,the Monetary Authorities