An Increase in Potential Output Will Result In

question 57

Multiple Choice

An increase in potential output will result in:

• A)a temporary expansionary gap.
• B)a higher rate of inflation eventually.
• C)a temporary recessionary gap.
• D)an immediate shift upward in the short-run aggregate supply curve.

---

Definitions:

Return to Risk Ratio

A measure that compares the expected returns of an investment to the risk or volatility associated with it.

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to follow or track the components of a market index, like the S&P 500.

PHStat

PHStat is a software program used for statistical analysis, particularly in conjunction with Microsoft Excel.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared differences from the mean.