Multiple Choice
Suppose that an economy is experiencing an expansionary gap.And suppose the economy is adjusting to potential GDP through a rising price level and a falling output level.Which of the following best illustrates how the adjustment of GDP is being achieved?
A) An active approach to correcting a recessionary gap is being used.
B) An active approach to correcting an expansionary gap is being used.
C) A passive approach to correcting a recessionary gap is being used.
D) A passive approach to correcting an expansionary gap is being used.
Correct Answer:
Verified
Correct Answer:
Verified
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Q33: Exhibit 15-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 15-4