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...
How does the selling of pollution rights lead to a more efficient outcome?
What will be an ideal response?
Economics
During the 2009 euro crisis, a number of countries had private banks that had become too "big to save." Explain
What will be an ideal response?
Economics
The government's $168 billion plan to stimulate the softening economy in 2008 failed partly because the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false
Economics
According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent
a. True b. False Indicate whether the statement is true or false
Economics