When Actual Output Is Less Than Potential Output, There Is

question 9

Multiple Choice

When actual output is less than potential output, there is ________ output gap and the rate of inflation will tend to ________.

• A)an expansionary; increase
• B)an expansionary; decrease
• C)a recessionary; decrease
• D)a recessionary; increase

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Definitions:

Range

The difference between the highest and lowest values in a dataset.

Range

The difference between the highest and lowest values in a set of data, indicating the spread of values.

Mathematical Difference

The result of subtracting one quantity from another.

Range

The difference between the largest and smallest values in a dataset, a measure of spread or variability.