For an Economy Starting at Potential Output, an Increase in One

question 62

Multiple Choice

For an economy starting at potential output, an increase in one or more of the components of aggregate expenditure in the short run results in a(n) :

• A) expansionary output gap.
• B) recessionary output gap.
• C) increase in potential output.
• D) decrease in potential output.

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Definitions:

Sugar

A sweet substance primarily obtained from sugarcane and sugar beets, used as a sweetener in food and drinks.

Opportunity Cost

The charge of bypassing the following best possibility when making a selection.

Strawberries

Sweet, red, heart-shaped fruits known for their delightful flavor and nutritional benefits.

Moving Points

A term that could refer to changing positions or values in a data set, market analysis, or physical locations on a map, but generally not a standard key term.