When an Expansionary Gap Exists, Actual Output ________ Potential Output

question 96

Multiple Choice

When an expansionary gap exists, actual output ________ potential output and the rate of inflation will tend to ________.

• A)exceeds; increase
• B)exceeds; decrease
• C)is less than; decrease
• D)is less than; increase

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Definitions:

Implied Contract

An agreement created by actions of the parties involved, rather than written or spoken words, which has the same legal force as a written contract.

Executed Contract

A contract in which all parties involved have fulfilled their obligations as outlined in the agreement.

Executory Contract

A contract that has not yet been fully performed.

Executory

Executory refers to a contract or agreement in which some future act or obligation remains to be performed under its terms.