An Output Gap with Y < Y^*

question 20

Multiple Choice

An output gap with Y < Y^*

• A)is known as an inflationary boom.
• B)tends to force prices up.
• C)occurs when there is excess demand.
• D)results in a loss of output due to unemployed resources.
• E)is desirable because it keeps wage costs low.

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Definitions:

Joint Ownership

Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.

Right Of Way

A type of easement that allows the crossing of another’s land.

Prescription

An authorized written instruction from a medical practitioner for the preparation and administration of a medicine or medical device.

Habitual Use

Frequent and regular use of something, often implying dependence or a pattern that is hard to break.