Which of the Following Occurs When an Expansionary Gap Is

question 22

Multiple Choice

Which of the following occurs when an expansionary gap is closed in the long run by the action of firms?

• A)Output decreases,and the price level increases.
• B)Inflation decreases,and unemployment rises.
• C)Both the equilibrium output and the price level increase.
• D)Both the equilibrium output and the price level decrease.
• E)Inflation rises,and unemployment decreases

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Master Status

Some characteristic of a person that overrides all other features of the person’s identity.

Having a Disability

refers to the condition of having physical, mental, or emotional impairments that substantially limit one or more major life activities.

Postindustrial Societies

Societies characterized by an economy where the service sector produces more wealth than the industrial sector, reflecting a shift away from manufacturing-based economies.

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