An Economic Boom That Creates an Inflationary Gap Is Usually

question 6

Multiple Choice

An economic boom that creates an inflationary gap is usually followed later by

• A)falling prices.
• B)a period of stagflation.
• C)an increase of potential GDP.
• D)an increase in aggregate supply.

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Definitions:

Lungs

Pair of respiratory organs in the chest of vertebrates that facilitate gas exchange between the atmosphere and the blood.

Oxygen Saturation

The measure of the amount of oxygen bound to hemoglobin in the blood, indicating respiratory efficiency.

Pulmonary Capillaries

Tiny blood vessels in the lungs where gas exchange occurs, allowing oxygen to enter the bloodstream and carbon dioxide to be removed.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs.