When actual output equals potential output, there is ________ output gap and the inflation rate will ________.
A. no; be equal to the expected rate of inflation
B. an expansionary; exceed the expected rate of inflation
C. an expansionary; be lower than the expected rate of inflation
D. a recessionary; exceed the expected rate of inflation
Answer: A
You might also like to view...
The F-test is used to determine if
A) a regression coefficient is significant. B) multicollinearity exists. C) a regression equation significantly accounts for the variation in the value of a dependent variable. D) an identification problem is present.
International trade permits greater consumption than would be possible from the domestic production alone
a. True b. False Indicate whether the statement is true or false
The sole proprietorship constitutes what percentage of the total number of firms in the United States?
a. 90 percent b. 75 percent c. 60 percent d. 45 percent e. 20 percent
Entrepreneurs are vitally important for economic progress because they
A) stick with the tried and true methods rather than experimenting with new ways of doing things. B) innovate and discover new ways of bringing items of value to consumers willing to pay for them. C) rely on price controls to determine the prices charged for the items they bring to market. D) rely on government grants and subsidies for the funding of research and development.