Multiple Choice
If we observe an economy adjusting to potential GDP as prices fall and real output increases,we can conclude that _____.
A) the economy was experiencing an expansionary gap
B) there is a labor surplus
C) the economy was experiencing a recessionary gap
D) self-correction is not the process that is occurring
E) there are widespread labor shortages
Correct Answer:
Verified
Correct Answer:
Verified
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