If an Economy Adjusts to Potential GDP Accompanied by a Rising

question 66

Multiple Choice

If an economy adjusts to potential GDP accompanied by a rising price level and a falling output level,

• A)all of the following are correct
• B)an active approach to correcting a contractionary gap is being used
• C)an active approach to correcting an expansionary gap is being used
• D)a passive approach to correcting a contractionary gap is being used
• E)a passive approach to correcting an expansionary gap is being used

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Definitions:

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Biological Influence

The impact of biological factors, such as genetics or physiology, on individual behavior and characteristics.

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same gender.

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