Question: Question 2 3 ( 2 points ) Saved If the Fed lowers the interest rate, in the long run, what happens to potential GDP ?

Question 23(2 points)
Saved
If the Fed lowers the interest rate, in the long run, what happens to potential GDP?
potential GDP decreases
potential GDP increases
potential GDP stays the same
Question 23(2 points) Saved If the Fed lowers the interest rate,

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Question 5 1 ( 2 points ) If the Fed lowers the interest rate, what happens to the equilibrium GDP in the short run? what about in the long run? equilibrium GDP falls temporarily in the short run,...

Q:

Question 5 6 ( 2 points ) If the Fed lowers the interest rate, in the long run, what happens to potential GDP ? potential GDP increases potential GDP stays the same potential GDP decreases Suppose...

Q:

If the Fed lowers the interest rate, in the long run, what happens to potential GDP ? potential GDP increases potential GDP stays the same potential GDP dereases

Q:

1. Prior to the Great Recessionthe Federal Reserve followed a restricted reserves policy. a. True b. False QUESTION 2. When the economy has a negative GDP gap. a. Potential GDP exceeds actual GDP b....

Q:

Suppose government spending rises in Boversia, shifting the AE curve outward. The central bank would like to keep both output and the real exchange rate constant. How can policymakers accomplish...

Q:

Assignment (Short-Answer and Algebraic Questions): (The numbers in square brackets give the breakdown of the points for various parts of each question. please explain your answers.) 1. This questions...

Q:

Assignment (Short-Answer and Algebraic Questions): (The numbers in square brackets give the breakdown of the points for various parts of each question. please explain your answers.) 1. This questions...

Q:

18. (03.08 LC) Which of the following accurately describes a limitation of fiscal policy? (2 points) The spending multiplier will always be more effective than the tax multiplier because of savings....

Q:

Part one. Read the article below the answer the question. Your grammar matter so as punctuation Starbucks raising wages for baristas The coffee chain said staff hired before Sept. 14 will soon see a...

Q:

Exercise 1. Gross Domestic Product is: national income after taxes the total value of all final goods and services plus intermediate goods and services the value of all final goods and services...

Q:

The waikiki enterprise corporation produces two types of computers at its manufacturing plant in Torrance, California. profit on computers a is $900 per unit and for computer b it is $600. the...

Q:

Diane Buswell is preparing the 2017 budget for one of Current Designs rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit...

Q:

Based on the information just given, what will be Robert s forecast of PAMC s growth rate? 2 . 4 9 % 3 . 0 0 % 7 . 7 5 % 4 . 5 0 % Which of the following statements accurately describes the...

Q:

give rationale why mann whitney test best statistical test for this case : Do significant differences exist between husbands and wives regarding holiday depression? There is an ordinal measure of...

Q:

Explain why business communication is important to individuals and organizations.

Q:

Explain how cultural differences affect business communication.

Q:

List and explain the goals of business communication.