If the Fed decides to leave the federal funds rate target range unchanged, we would expect _______.     A. deflation to occur and the unemployment rate to increase   B. the recessionary gap to increase   C. potential GDP to increase and the full-employment quantity of labor to increase   D. inflation to increase and the unemployment rate to decrease

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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If the Fed decides to leave the federal funds rate target range unchanged, we would expect _______.
 
 
A.
deflation to occur and the unemployment rate to increase
 
B.
the recessionary gap to increase
 
C.
potential GDP to increase and the full-employment quantity of labor to increase
 
D.
inflation to increase and the unemployment rate to decrease
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