Exhibit 10-3 -In Exhibit 10-3,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 (Y1) is greater than potential output (Y2).

Exhibit 10-3 -In Exhibit 10-3,the Distance Between Y1 and Y2 Is Called

Exhibit 10-3 -In Exhibit 10-3,the Distance Between Y₁ and Y₂ Is Called