Multiple Choice
Which of these changes is observed in an economy when a recessionary gap is closed in the long run?
A) An increase in the inflation rate and a decrease in the unemployment rate
B) An increase in the level of output and a decrease in the price level
C) An increase in both the rate of output and the price level
D) A decrease in both the rate of output and the price level
E) A decrease in the inflation rate and an increase in the unemployment rate
Correct Answer:
Verified
Correct Answer:
Verified
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