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    Economics Study Set 11
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    Exam 29: Business Cycles, Unemployment, and Inflation
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    If the GDP Gap Is Positive, Then
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If the GDP Gap Is Positive, Then

Question 236

Question 236

Multiple Choice

If the GDP gap is positive, then


A) the inflation rate is falling.
B) the unemployment rate is rising.
C) potential GDP is greater than actual GDP.
D) actual GDP is greater than potential GDP.

Correct Answer:

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