Exhibit 11-3 -In Exhibit 11-3, the distance between Y₁ and Y₂ is called A)an expansionary gap B)a contractionary gap C)an increase in potential output D)the natural rate of unemployment E)a decrease in potential output

Question

Quizplus · Accepted Answer

The distance between Y₁ and Y₂ represents an expansionary gap, which occurs when actual output exceeds potential output in an economy.

Exhibit 11-3 -In Exhibit 11-3, the Distance Between Y1 and Y2 Is

Exhibit 11-3 -In Exhibit 11-3, the Distance Between Y₁ and Y₂ Is