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Author Question: If a shock results in a positive output gap and the government's policy choice is to do nothing, (Read 137 times)

Chelseaamend

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on: Jan 2, 2020
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.
Macroeconomics, Canadian Edition ¦ Williamson ¦ 4th Edition
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Marked as best answer by Chelseaamend on Jan 2, 2020

nixon_s

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Reply #1 on: Jan 2, 2020
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.
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Chelseaamend

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Reply 2 on: Jan 2, 2020
Wow, this really help

Joy Chen

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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