If an Economy Is Operating at Its Potential Output Level

question 158

True/False

If an economy is operating at its potential output level, a change in aggregate demand or short-run aggregate supply will induce an inflationary or a recessionary gap.

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Definitions:

Psychological Disorders

Mental health conditions characterized by disturbances in thought, emotion, or behavior that cause distress or impaired functioning.

Aging

A natural and complex physiological process leading to the gradual decline in physical and cognitive functions over time.

Cognition

The capacity to think, remember, and anticipate.

Parkinson's Disease

A neurodegenerative disorder that affects movement, often including tremors, stiffness, and difficulty with walking and balance.