Solved

Suppose the Economy Is Currently Operating at Potential Output; an Expansionary

Question 15

Multiple Choice

Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following EXCEPT:

A) a positive demand shock.
B) a positive inflation shock.
C) an increase in government spending.
D) an increase in the inflation rate.

Related Questions

Q10: Shifts in _ can push the economy

Q10: The AD curve _ because, holding all

Q19: For a given inflation rate, if bright

Q26: The fact that output gaps will not

Q36: If the interest rate in the U.S.rises,

Q46: Graphically, long-run equilibrium occurs at the intersection

Q51: When the interest rate in the U.S.falls,

Q75: As the number or quality of available

Q132: When actual output equals potential output there

Q155: Starting from potential output, if firms become