Solved

When Actual Output Equals Potential Output There Is ________ Output

Question 132

Multiple Choice

When actual output equals potential output there is ________ output gap and the rate of inflation will tend to ________.

A) an expansionary; increase
B) an expansionary; decrease
C) no; remain the same
D) a recessionary; increase

Related Questions

Q127: Starting from a long-run equilibrium, an increase

Q128: At long-run equilibrium inflation _ and output

Q129: Starting from long-run equilibrium, the long-run impact

Q130: At a constant rate of exchange between

Q131: For a given level of inflation, if

Q133: A vertical line showing the economy's potential

Q134: According to the AD-AS diagram, short-term, an

Q135: Starting from a long-run equilibrium, a reduction

Q136: A downward shift in the Fed's reaction

Q137: Which of the following will shift the