An inflationary output gap is characterized by
A) constant prices.
B) real GDP falling below potential output.
C) falling prices.
D) real GDP exceeding potential output.
E) real output that varies one- for- one with aggregate demand.
Correct Answer:
Verified
Q6: What economists sometimes call the "long- run
Q7: In the long run in the AD/AS
Q8: If the economy is experiencing an inflationary
Q9: Consider the basic AD/AS macro model in
Q10: Consider the AD/AS model, and suppose that
Q12: Automatic fiscal stabilizers the impact of demand
Q13: Consider the AD/AS model. Since output in
Q14: If the economy in the short run
Q15: As the macro economy adjusts from the
Q16: If the short- run macroeconomic equilibrium occurs
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