Solved

When an Inflationary Gap Exists, Actual Output _____ Potential Output

Question 71

Multiple Choice

When an inflationary gap exists, actual output _____ potential output and the rate of wage and price inflation will tend to ______.


A) exceeds; increase
B) exceeds; decrease
C) equals; remain the same
D) is less than; increase

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q66: Suppose the economy is initially at full-employment

Q67: -Refer to Figure</p></div><svg width=

Q68: -Refer to Figure</p></div><svg width=

Q69: When an AD shock reduces actual output

Q70: When a recessionary gap exists, actual output

Q72: Recessionary gaps are eventually eliminated by:
A) rising

Q73: Inflationary gaps are eventually eliminated by:
A) falling

Q74: -Refer to Figure</p></div><svg width=

Q75: -Refer to Figure</p></div><svg width=

Q76: Suppose that the economy experiences a series

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents