When actual output exceeds potential output,there is ________ output gap and the rate of inflation will tend to ________.
A) an expansionary;increase
B) an expansionary;decrease
C) no;remain the same
D) a recessionary;increase
E) a recessionary;decrease
Correct Answer:
Verified
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
Q77: A low rate of expected inflation tends
Q78: When no output gap exists,actual output _
Q79: A horizontal line showing the current rate
Q80: When actual output equals potential output,there is
Q81: In a self-correcting model of the economy,recessionary
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