When Real GDP Is Greater Than Potential GDP, There Is_{--------------------}which

question 99

Multiple Choice

When real GDP is greater than potential GDP, there is_{--------------------}which leads the inflation rate to_{--------------------}
.

• A)a recessionary gap; fall
• B)an inflationary gap; fall
• C)an inflationary gap; rise
• D)a recessionary gap; rise
• E)a recessionary gap; remain stable

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Definitions:

Making Concessions

The act of yielding or compromising on certain points or demands in a negotiation or disagreement.

Potential Agreement

A possible future agreement between parties outlining conditions that are satisfactory to all involved entities.

Good Faith

An honest intention to act without taking an unfair advantage over another party.

High Process Control

A situation where there is strict regulation and management of the procedures and methods utilized in production or in carrying out tasks.