When Actual Output Equals Potential Output and the Inflation Rate

question 150

Multiple Choice

When actual output equals potential output and the inflation rate is stable, the economy is said to be in ________ equilibrium.

• A)contractionary
• B)expansionary
• C)short-run
• D)long-run

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Definitions:

Cuban Economic Crisis

A period of severe economic downturn in Cuba, often referring to the hardships faced in the 1990s after the dissolution of the Soviet Union, its main supporter.

US Tariff Agreements

Policies or negotiated deals that the United States enters into with other countries to set customs duties or taxes on imported and exported goods.

William McKinley

The 25th President of the United States, serving from 1897 until his assassination in 1901, noted for leading the nation during the Spanish-American War and promoting economic growth.

Cuban Uprising

Refers to any of the various rebellions or revolutions in Cuba, most notably the Cuban Revolution of 1959 which brought Fidel Castro to power.