When Actual Output Exceeds Potential Output, There Is ______ Output

question 90

Multiple Choice

When actual output exceeds 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:

Overcome

To successfully deal with or gain control of something difficult.

Security Interest

A legal right or claim on assets granted to a creditor to secure the repayment of a loan, ensuring the asset's availability for seizure in case of default.

Lease

A contractual agreement where one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for payment.

Electronic Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.