Suppose the Economy Is Currently Operating at Potential Output; a Recessionary

question 80

Multiple Choice

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

• A) a negative demand shock.
• B) a negative inflation shock.
• C) a decrease in government spending.
• D) a decrease in the inflation rate.

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Definitions:

First to Invent

A principle where the right to a patent for an invention is determined by being the first person to have conceived of the invention, rather than the first to file a patent application.

Patent Law

A legal framework that gives inventors exclusive rights to their inventions for a certain period of time.

Economic and Social Council

is a principal organ of the United Nations, responsible for coordinating the economic, social, and related work of 15 UN specialized agencies, commissions, and five regional commissions.

UN's Annual Operating Budget

The financial budget that outlines the expected income and expenditure for the United Nations for a given fiscal year, supporting its operations and missions worldwide.