An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
Economics
You might also like to view...
If product prices decrease more than nominal wages decrease, the real value of wages will increase
Indicate whether the statement is true or false
Economics
Increase in capacity utilization will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Economics
Excess burden calculations typically assume many other distortions.
A. True B. False C. Uncertain
Economics
Economic growth appears on a production possibilities curve as
A) the curve shifting out away from the origin. B) the curve shifting in toward the origin. C) a change in the slope of the curve. D) the points outside the production possibilities curve.
Economics