When a recessionary gap exists, actual output _____ potential output, unemployment is __________ the natural rate, wage rate growth _________ and the AS curve shifts ______ to ___________ the gap.
A) exceeds; higher than; increases; up; increase
B) exceeds; lower than; increases; up; decrease
C) is less than; higher than; falls; down; decrease
D) is less than; lower than; falls; up; eliminate
Correct Answer:
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A) rising
A) falling![]()
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