Multiple Choice
Suppose an expansionary gap is closed in the long run.How will nominal GDP and real GDP be affected?
A) Nominal GDP will decline, and real GDP will decline.
B) Nominal GDP will increase, and real GDP will increase.
C) Nominal GDP will increase, but real GDP will decline.
D) Nominal GDP will decline, but real GDP will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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