Related to the Economics in Practice on p. 227: In the simple "Keynesian" view, if planned aggregate expenditure and aggregate demand exceed capacity output, there is
A) an inflationary gap and price level rises.
B) an inflationary gap and price level falls.
C) a recessionary gap and price level rises.
D) a recessionary gap and price level falls.
Correct Answer:
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Q233: If _ equilibrium output _, the price
Q234: The long-run aggregate supply curve reflects the
Q235: When the _ decreases, then potential output
Q236: Related to the Economics in Practice on
Q237: Potential output is the most that can
Q239: Refer to the information provided in Figure
Q240: Long-run aggregate supply is equal to
A) short-run
Q241: Potential output is the same as long-run
Q242: If the short-run aggregate supply curve intersects
Q243: If the long-run aggregate supply curve is
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