If Real GDP Is Greater Than Potential GDP,the Output Gap

question 20

Multiple Choice

If real GDP is greater than potential GDP,the output gap could be eliminated by
1) an increase in government purchases;
2) an upward shift in the AE curve;
3) a reduction in the money supply.

• A)1 only
• B)2 only
• C)3 only
• D)1 or 2
• E)1 or 2 or 3

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Definitions:

Direct

Straightforward or without intermediary; moving or extending from one point to another without deviation or interruption.

Indirect

Pertains to actions, communication, or methods that are not straightforward or direct, often involving intermediate steps or implications.

Non-work Domain

Aspects of an individual's life and identity that are unrelated to their job or career, including family, hobbies, and personal interests.

Too Many Tasks

A situation where an individual or organization is overwhelmed by the number of tasks to be completed, often leading to stress or inefficiency.