A contractionary gap is
A) the difference between aggregate supply and aggregate demand.
B) the amount of unwanted inventory accumulation.
C) the amount by which taxes should be increased in order to put the brakes on run-away inflation.
D) the amount by which the equilibrium level of real GDP is less than the long-run equilibrium level as given by LRAS.
Correct Answer:
Verified
Q1: Suppose the economy is experiencing a inflationary
Q2: If the government wants to decrease real
Q3: An inflationary gap is
A)the difference between aggregate
Q5: The amount by which the equilibrium level
Q6: Fiscal policy refers to the
A)manipulation of the
Q7: If the government wants to increase real
Q8: If the government wants to engage in
Q9: If the government wants to engage in
Q10: If the government increases spending to move
Q11: Suppose the economy is experiencing a contractionary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents