If We Observe an Economy Adjusting to Potential GDP as Prices

question 163

Multiple Choice

If we observe an economy adjusting to potential GDP as prices fall and real output increases,

• A)it was experiencing an expansionary gap
• B)the correction involves a shift of the AD curve
• C)it was experiencing a contractionary gap
• D)self-correction is not the process that is occurring
• E)there are widespread labor shortages

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Definitions:

Street Crimes

Illegal activities that occur in public places, typically involving theft, violence, or vandalism.

Primary Aging

The natural and inevitable aging process that occurs over time, independent of disease or environmental factors.

Calorie Restriction

A dietary regimen that reduces calorie intake without incurring malnutrition or a decrease in essential nutrients, often investigated for its potential to extend lifespan.