An Inflationary Gap Occurs When

question 85

Multiple Choice

An inflationary gap occurs when:

• A) prices are too low.
• B) real output is too low.
• C) potential output exceeds actual output.
• D) actual output exceeds potential output.

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Definitions:

Genetic Blueprint

The set of genetic instructions encoded in DNA that defines the characteristics of an organism.

Maturation

The process of development in which an individual matures or reaches full functionality, often used to describe the physical and psychological growth that occurs naturally with age.

Habituation

Tendency of the brain to stop attending to constant, unchanging information.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from traumatic events or persistent failure to succeed. It is thought to be one of the underlying causes of depression.