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    Principles of Economics
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    Exam 32: The Fed Model: Linking Interest Rates, Output, and Inflation
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    Take a Look at the IS-MP-PC Model Shown Here
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Take a Look at the IS-MP-PC Model Shown Here

Question 29

Question 29

Multiple Choice

Take a look at the IS-MP-PC model shown here. At equilibrium, the output gap is:
Take a look at the IS-MP-PC model shown here. At equilibrium, the output gap is:   A) 5%. B) 3%. C) -4%. D) -1%.


A) 5%.
B) 3%.
C) -4%.
D) -1%.

Correct Answer:

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