Question: KNOWLEDGE CHECK Here is the output gap in the U.S. in early 1975. What was likely the Fed interest rate policy? To hike interest rates

KNOWLEDGE CHECK Here is the output gap in the U.S. in early 1975. What was likely the Fed interest rate policy? To hike interest rates as that would decrease the cost of goods produced To hike interest rates as that would increase the cost of goods produced To cut interest rates as that would decrease the cost of goods produced To cut interest rates as that would increase the cost of goods produced Click to open/close chart MC KNOWLEDGE CHECK Transcript bank mandales Dank decision-making bank toolkit um interest rate estim... Potential God Output Gap Index Related functions Menu ICBOPGDPR 20823.20 As of 12/31/26 Billions Congressional Budget Office Potential R... Congressional Budget Office CBOPGDPR Index 15 Compare 19 Actions 97) Edit Line Chart LO TRAHY 1 W Max Quarterly Table U.S. potential GDP ($B) U.S. actual GOP ($B) wo go on 1 on 2 tra on 3 on 4 TO we go wo go TO WE go 11

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