Moderate expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A) moderate;moderate
B) large;low
C) zero;high
D) small;high
E) small;low
Correct Answer:
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Q65: When an expansionary gap exists,actual output _
Q66: When actual output is less than potential
Q67: A current high rate of inflation will
Q68: Expansionary output gaps are eliminated through
A) rising
Q69: The long-run aggregate supply line is
A) downward-sloping.
B)
Q71: High expected inflation leads to _ increases
Q72: When a recessionary gap exists,actual output _
Q73: A vertical line showing the economy's potential
Q74: The inflation adjustment (IA)line is
A) downward-sloping.
B) upward-sloping.
C)
Q75: Low expected inflation leads to _ increases
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