Question Question 18 1 pts to If actual output stays above potential output for some time, then we should expect rise and the Fed to respond by raising unplanned inventory investment; money supply inflation; interest rates unemployment rate; interest rates money supply; interest rates

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Transcribed Image Text: Question 18 1 pts to If actual output stays above potential output for some time, then we should expect rise and the Fed to respond by raising unplanned inventory investment; money supply inflation; interest rates unemployment rate; interest rates money supply; interest rates
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Transcribed Image Text: Question 18 1 pts to If actual output stays above potential output for some time, then we should expect rise and the Fed to respond by raising unplanned inventory investment; money supply inflation; interest rates unemployment rate; interest rates money supply; interest rates
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7J07IS

The goods market is in equilibrium where the aggregate demand and aggregate supply are equal to each other. It means the aggregate demand curve is downward sloping and the aggregate supply curve is upward sloping. The aggregate demand curve shows that various quantities are demanded at various price levels. The aggregate supply curve shows that various quantities are supplied at various price levels.  If the actual output is abo ... See the full answer