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When an Expansionary Gap Exists,actual Output _________ Potential Output and the Rate

Question 205

Multiple Choice

When an expansionary gap exists,actual output _________ potential output and the rate of inflation will tend to __________.


A) is greater than;increase
B) is greater than;decrease
C) equals;remain the same
D) is less than;increase
E) is less than;decrease

Correct Answer:

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