This topic contains a solution. Click here to go to the answer

Author Question: If a shock results in a positive output gap and the government's policy choice is to do nothing, (Read 129 times)

Chelseaamend

  • Hero Member
  • *****
  • Posts: 545
If a shock results in a positive output gap and the government's policy choice is to do nothing,
◦ the price level will fall, the interest rate will fall, and output will rise, closing the gap.
◦ the government will immediately implement expansionary fiscal policy.
◦ it will be detrimental to the economy.
◦ the central bank will immediately increase the money supply and close the output gap.
◦ the economy will be prevented from returning to equilibrium.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Chelseaamend on Jan 2, 2020

nixon_s

  • Sr. Member
  • ****
  • Posts: 359
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly




Chelseaamend

  • Member
  • Posts: 545
Reply 2 on: Jan 2, 2020
Wow, this really help


miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

For a complete list of videos, visit our video library