An Inflationary Output Gap Would Generate Which of the Following

question 70

Multiple Choice

An inflationary output gap would generate which of the following conditions in the economy?

• A)There is an unusually small demand for labour.
• B)Workers have a relatively large amount of bargaining power with employers.
• C)Firms are making low profits.
• D)There is much idle capacity.
• E)There is downward pressure on wages.

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Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Binomial Expansion

The process of expanding an expression that is raised to a finite power and expressed as a sum of terms using the binomial theorem.

Binomial Coefficient

A number that represents the coefficients in the expansion of a binomial raised to a power, usually expressed as nCk or C(n, k).

Pascal's Triangle

A triangular array of numbers where each number is the sum of the two numbers directly above it, often used in probability theory and algebra.