Suppose the economy is in an inflationary gap. which of the following public policies could the economy get back to potential real gross domestic product?
a. decrease unemployment insurance benefits
b. decrease marginal tax rate
c. increase the discount rate
d. have the federal reserve sell government bonds

D. have the Federal Reserve sell government bonds

Explanation:

In inflationary processes, the Federal Reserve must act to regularize the economy. This is done through monetary policy instruments.

The sale of government bonds by the Federal Reserve is a contractionary monetary policy, that is, it aims to remove money from circulation in the economy. Since inflation is a monetary phenomenon caused by excess currency in circulation, bond sales will cause agents to send money to the FED in exchange for the securities. Inflation tends to decrease and the economy will return to the functional level where real GDP will be closer to its potential.

the correct answer is individualism and exchange. at this stage, children begin to question the rules, because they can see that there is more than one side to them. different individuals have different viewpoints. they won't be able to reach this stage because of ignorance, a lack of ethics or personal biases. that is because people with that characteristiscs are not able to distinguish what is good or what is bad and they can't pursue their individual interests.