An expansion occurs when ________, when ________, or when both of these occur.
A)potential output grows rapidly; actual output rises above potential output.
B)potential output grows slowly; actual output rises above potential output
C)potential output grows rapidly; actual output equals potential output
D)potential output grows slowly; actual output equals potential output

Question

Quizplus · Accepted Answer

When potential output grows rapidly, conditions are ripe for an economic expansion. Also, when actual output rises above potential output, an expansion occurs.

An Expansion Occurs When ________, When ________, or When Both

An Expansion Occurs When , When , or When Both