When Actual Output Is Less Than Potential Output, There Is

question 47

Multiple Choice

When actual output is less than 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)a recessionary; be lower than the expected rate of inflation
• D)a recessionary; exceed the expected rate of inflation

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Definitions:

Concentrating

The mental process of focusing one's attention or thoughts on a specific object or activity.

High Self-esteem

A positive evaluation of oneself, characterized by feelings of respect, confidence, and worthiness.

Extraverted

Describing a personality trait characterized by outgoingness, sociability, and a high level of engagement with the external world.

Conform

The act of adjusting one's behavior or beliefs to align with the norms or standards of a group or society.