An Inflationary Output Gap Implies That

question 47

Multiple Choice

An inflationary output gap implies that

• A)the demand for all factor services will be relatively low.
• B)there is excess supply of most factors of production .
• C)there is a pressure for wages to decrease.
• D)the economy's resources are being used beyond their normal capacity.
• E)the intersection of AD and AS occurs at real GDP below potential output.

---

Definitions:

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks.

$1 Million

Refers to the sum of one million dollars, a significant financial milestone for individuals and businesses.

Exit Strategies

Planned methods of exiting one's current situation, often used in the context of business to refer to how an investor or entrepreneur plans to cash out of an investment.

IPOs

Initial Public Offerings, the process by which a private company becomes publicly traded by offering shares of its stock to the general public for the first time.