Starting from a Long-Run Equilibrium, a Reduction in Potential Output

question 135

Multiple Choice

Starting from a long-run equilibrium, a reduction in potential output leads to ________ gap in the short run and to a ________ rate of inflation in the long run.

• A)an expansionary; higher
• B)an expansionary; lower
• C)a recessionary; lower
• D)a recessionary; higher

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Definitions:

HIV-Negative

A status indicating that an individual does not have the Human Immunodeficiency Virus (HIV), based on testing.

Antibodies

Proteins produced by the immune system in response to antigens, which help to identify and neutralize foreign objects like bacteria and viruses.

Macrophages

Large white blood cells that are an essential part of the immune system, responsible for detecting, engulfing, and destroying pathogens and dead cells.

Antigens

Foreign substances in the body that trigger an immune response.