Suppose that real-time estimates of the GDF gap are always accurate, and that the Fed always takes actions to ensure that GDP is equal to potential GDP. Which of the following will occur, if the Fed learns that the GDP gap is equal to - 3%? ORwill fall. The inflation rate vil fall Y will fall. There will be an unintended increase in business invennories
Suppose that real-time estimates of the GDF gap are always accurate, and that the Fed always takes actions to ensure that GDP is equal to potential GDP. Which of the following will occur, if the Fed learns that the GDP gap is equal to - 3%? ORwill fall. The inflation rate vil fall Y will fall. There will be an unintended increase in business invennories
Chapter1: Making Economics Decisions
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![Suppose that real-time estimates of the GDF gap are always acurate, and that the Fed always
takes actions to ensure that GDP is equal to potential GDP. Which of the following will occur, if
the Fed learns that the GDP gap is equal to - 3%?
Rwill fall
The inflation rate vl fall
Y will fall.
O There will be an unintended increase in business invennories](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2b04a32-2d09-498a-a0e3-3a0c0d046316%2F78766c2f-cd57-4967-a8a7-d8c2fdd410da%2Fy7i7va_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that real-time estimates of the GDF gap are always acurate, and that the Fed always
takes actions to ensure that GDP is equal to potential GDP. Which of the following will occur, if
the Fed learns that the GDP gap is equal to - 3%?
Rwill fall
The inflation rate vl fall
Y will fall.
O There will be an unintended increase in business invennories
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