Starting from a Long-Run Equilibrium, an Increase in Potential Output

question 127

Multiple Choice

Starting from a long-run equilibrium, an increase in potential output leads to ________ gap in the short run and to ________ rates 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:

Magnet

An object or material that produces a magnetic field, attracting or repelling certain materials like iron.

Mstsc Command

A command-line instruction used to initiate the Microsoft Terminal Services Client, which allows users to connect to a remote desktop.

Remotely Accessing

The process of obtaining access to a computer or network from a distance, typically via the internet, allowing for control or data manipulation from afar.

Control Panel

The Control Panel in Windows operating systems is a tool that allows users to adjust system settings, control hardware, manage software, and access network options.