When an Economy Is Experiencing a Negative Output Gap,there Is

question 24

Multiple Choice

When an economy is experiencing a negative output gap,there is:

• A)little inflationary pressure due to low demand.
• B)little inflationary pressure due to high demand.
• C)significant inflationary pressure due to low demand.
• D)significant inflationary pressure due to high demand.

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Definitions:

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one extra unit of a good or service.

Economic Sense

The rationale or logic derived from economic principles or considerations, often related to making decisions based on cost-benefit analyses.

Tickets

Documents or electronic codes that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Economic Profits

Profits exceeding the opportunity costs of all resources used in production, including the cost of capital.