An inflationary output gap would generate which of the following conditions in the economy?
A) Firms are making low profits.
B) Workers have relatively more bargaining power with employers.
C) There is an unusually small demand for labour.
D) There is downward pressure on wages.
E) There is much idle capacity.
Correct Answer:
Verified
Q2: How do we define the economy's output
Q3: In the basic AD/AS model,which of the
Q4: If the short-run macroeconomic equilibrium occurs with
Q5: In macroeconomic analysis,the assumption that potential output
Q6: When we study the adjustment process in
Q7: Which of the following will occur as
Q8: An inflationary output gap is characterized by
A)falling
Q9: An inflationary output gap occurs when
A)actual GDP
Q10: Which of the following would occur as
Q11: Which of the following are the defining
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