An Inflationary Gap Exists When Consumers

question 134

Multiple Choice

An inflationary gap exists when consumers

• A)are saving more than businesses are investing.
• B)and businesses are purchasing less than the economy is capable of producing.
• C)and businesses are demanding more than the economy is capable of producing.
• D)and businesses are demanding less than the full employment level of output.

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Definitions:

Politics From The Person

The idea that personal beliefs, values, and experiences significantly influence one's political views and actions.

Social Decentering

The psychological process of considering and adapting to the thoughts, feelings, and perspectives of others.

Empathy

Emotional reaction that is similar to the reaction being experienced by another person; empathizing is feeling what another person is feeling.

Predictive Adaptation

The ability to change or modify one's behavior in anticipation of future events or changes in the environment.