If Output Gap in an Economy Declines Because of a Gradual

question 47

True/False

If output gap in an economy declines because of a gradual increase in aggregate demand as the economy moves out of a recession, it is called a real business cycle effect.

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Definitions:

Third-Party Candidate

A candidate for public office who represents a political party outside the two main political parties in the American political system.

Ross Perot

An American businessman and politician known for his two independent presidential campaigns in 1992 and 1996, focusing on fiscal responsibility and political reform.

Presidential Election

The process by which the President of the United States is selected, involving nationwide popular votes and the Electoral College.

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The broad alliance of different social and political groups that supported the New Deal policies of President Franklin D. Roosevelt in the 1930s and beyond.