When Actual Output Equals Potential Output, There Is ______ Output

question 25

Multiple Choice

When actual output equals potential output, there is ______ output gap and the inflation rate will ____.

• A)an expansionary; exceed the expected rate of inflation
• B)an expansionary; be lower than the expected rate of inflation
• C)no; be equal to the expected rate of inflation
• D)a recessionary; exceed the expected rate of inflation

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Definitions:

Psychological Research

The scientific study of the human mind, behavior, and mental processes through various research methodologies and experiments.

Anecdotal Evidence

Informal evidence based on personal stories or experiences, not considered scientifically rigorous.

Evidence-Based

Practices or decisions that are grounded on the best available research and evidence, often used in healthcare and policymaking.

Critical Thinking

The intent to critically investigate and judge an issue for the purpose of arriving at a verdict.