The existence of an inflationary gap should cause
A) wages to fall.
B) prices to fall.
C) unemployment to rise.
D) net exports to rise.
Correct Answer:
Verified
Q156: An inflationary gap will occur when
A)real GDP
Q157: When an inflationary gap exists, the job
Q158: Recessionary gaps usually lead to
A)structural unemployment.
B)cyclical unemployment.
C)seasonal
Q159: Figure 10-4 Q160: What is the principal reason that economists Q162: The existence of an inflationary gap would Q163: The reason that stagflation tends to follow Q164: Part of the normal aftermath of a Q165: A period of stagflation is the normal Q166: Stagflation is the conjunction of
A)stagnation and recession.
B)inflation
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