Output in excess of potential GDP
A) implies a negative output gap
B) describes a recession
C) is impossible
D) is unsustainable
E) creates deflation

Name: Output in excess of potential GDP A) implies a negative output gap B) describes a recession C) is impossible D) is unsustainable E) creates deflation
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Output in excess of potential GDP is unsustainable because it cannot be maintained in the long run without causing inflation or other negative economic consequences.

Output in Excess of Potential GDP