"Overshooting" Refers to a Temporary Period in the Adjustment Loop

question 125

Multiple Choice

"Overshooting" refers to a temporary period in the adjustment loop during which

• A)the percentage deviation of real GDP from natural real GDP exceeds the growth rate of nominal GDP.
• B)inflation exceeds the growth rate of nominal GDP.
• C)nominal GDP growth exceeds its permanent value.
• D)we move from one long-run equilibrium to another.

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