If the Equilibrium Real GDP Were Higher Than Potential GDP

question 33

Multiple Choice

If the equilibrium real GDP were higher than potential GDP, then a contractionary fiscal policy would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

---

Definitions:

Drill-Down Feature

A functionality that allows users to view detailed data behind summaries or aggregated figures, typically within software applications.

Types Of Accounts

Types of accounts refer to the various categories under which financial transactions are recorded in accounting, including assets, liabilities, equity, revenue, and expenses.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater value, based on the accounting equation.

Onscreen Forms

Digital or virtual forms displayed on a computer or other digital device's screen, allowing for electronic data entry.