The More the Short-Run Output Exceeds an Economy's Potential,_____

question 128

Multiple Choice

The more the short-run output exceeds an economy's potential,_____.

• A)the smaller the expansionary gap
• B)the greater the upward pressure on the price level
• C)the larger the recessionary gap
• D)the greater the downward pressure on the price level
• E)the lesser the demand for resources

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Definitions:

ACT Theory

A cognitive theory, short for Adaptive Control of Thought, which explains how the mind organizes knowledge and produces intelligent behavior.

Memory Stores

Components of the memory system responsible for retaining information over short-term, long-term, and intermediate durations.

Typical Members

Typical members refer to the most representative or usual examples within a category or group, often used to illustrate general characteristics or behaviors.

Atypical Members

Members of a category that do not conform to the typical characteristics or expectations of that category.