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h) When does potential output Yp change? When central bank policy changes When the size of the labour force changes When the price level changes
h) When does potential output Yp change? When central bank policy changes When the size of the labour force changes When the price level changes When government policy changes i) What do fiscal policy and monetary policy accomplish? They can change potential Y to eliminate output gaps They can change aggregate demand to eliminate price changes They can change aggregate demand to eliminate output gaps All of the answers are correct j) If Y equals 1,200 and YP is 1000, then what is the output gap equal to? -20% +20% -8.33% +8.33%
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