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

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A. tea, and coffee and cream to both be negative. B. tea, and coffee and cream to both be positive. C. tea to be positive, but negative between coffee and cream. D. tea to be negative, but positive between coffee and cream.

Economics

A method of analyzing the strategic interaction that occurs between small numbers of people, firms, organizations, or countries is called

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Economics