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    Macroeconomics Study Set 41
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    Exam 12: U.S Inflation, Unemployment, and Business Cycle
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    If the Economy Is at Potential GDP and the Fed
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If the Economy Is at Potential GDP and the Fed

Question 380

Question 380

Multiple Choice

If the economy is at potential GDP and the Fed increases the quantity of money, then


A) potential GDP rises.
B) real GDP rises permanently above potential GDP.
C) real GDP rises temporarily above potential GDP.
D) potential GDP and real GDP both decrease.

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