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
You might also like to view...
The link between incentives and economic growth suggests a certain trade-off between equity and efficiency
Indicate whether the statement is true or false
A monopoly has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. An inelastic demand curve d. A less elastic demand curve than a competitive firm
To attract more bidders, and more aggressive bidders, to your auction
a. withhold relevant information about the value of the object b. don't allow bidders to know how others are bidding c. do not allow potential bidders to examine the object too closely d. hold oral auctions
The index used for international price comparisons is the:
A. World Bank's International Comparison Program index. B. World Bank's World Price Index. C. United Nations' World Consumer Price Index. D. World Trade Federation's International Price Index.