Suppose the Economy Is Currently Operating at Potential Output; an Expansionary

question 15

Multiple Choice

Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following EXCEPT:

• A) a positive demand shock.
• B) a positive inflation shock.
• C) an increase in government spending.
• D) an increase in the inflation rate.

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Definitions:

Share

An individual portion or percentage of ownership in a company or a financial asset, typically traded on a stock exchange.

Second-borns

Individuals born as the second child in their family, potentially influencing their personality and behavior due to birth order dynamics.

Sense Of Dethronement

Feelings of loss or displacement often experienced by a child upon the arrival of a new sibling.

First-borns

Refers to individuals who are the eldest child in their families, often discussed in the context of their typical personality traits, leadership qualities, and responsibilities.