If, in addition,
𝑅
𝑡
=
𝑟
¯
, short run output equals zero .

Question

If, in addition, 
𝑅
𝑡
=
𝑟
¯
, short run output equals zero .

BlackTom AI · Accepted Answer

The prompt presents a question but does not provide the list of answer options to evaluate. Restating what is given: the question text says, 'If, in addition, Rt = r̄, short run output equals zero.' and there is an 'answer' field containing the single token 'is positive,' but no answer options are supplied in 'answer_options.'

Because there are no observable options to compare, we cannot perform a step-by-step evaluation of each choice (correct or incorrect) as the instruction to analyze multiple dropdown options requires.

In a typical problem of this style, one would expect to see several completions for a blank or a choice among several possible signs (e.g., 'is positive', 'is zero', 'is negative', etc.). Without those alternatives, we cannot determine which of them would be correct, nor can we justify why 'is positive' would be selected if it were among the options.

Given the missing data, here are guiding considerations you could apply once options are available:
- Check consistency with the stated condition Rt = r̄ and the implied short-run output relationship. If the model links Rt to deviations of output from potential output, determine whether the sign of the output gap would be positive, negative, or zero under that condition.
- Evaluate each option for logical coherence: an option claiming the output is zero would require a neutral position in the model, whereas 'positive' or 'negative' would imply a deviation from potential output.
- Look for economic intuition: if the policy rate equals a baseline (r̄) and the economy is at a particular demand or supply condition, the short-run output could move in a direction depending on how the interest rate interacts with aggregate demand and supply.

Once the actual answer options are provided, you can map each choice to this framework and provide a clear justification for why the correct option aligns with the model’s implications, while the incorrect options reveal common misconceptions (such as conflating policy stance with immediate output outcomes or misinterpreting the effect of an equalized rate).

FA25 ECON 302 002 Final Exam (Chapters 7-9, 11-13, 19-20): Sample Questions

If, in addition, 𝑅 𝑡 = 𝑟 ¯ , short run output equals zero .

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Similar Questions

Using your previous answer for 𝜋 𝑡 , calculate 𝑌 ~ 𝑡 (in percent). Round your answer to the nearest tenth of a percent.

If, in addition, 𝑅 𝑡 = 𝑟 ¯ , short run output is negative .

If, in addition, 𝑅 𝑡 = 𝑟 ¯ , short run output [ Select ] is positive equals zero is negative .

Which of the following statements is true?

In the short-run, an output gap occurs because

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