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.

---

Definitions:

Hacker

A person who illegally accesses, or enters, another person’s or company’s computer system to obtain information or steal money.

Responsible Corporate Officer Doctrine

A legal principle that holds company executives personally liable for the illegal actions of their company if they were in a position to prevent the actions.

Personally Liable

The legal responsibility of an individual to settle a debt or obligation from their own assets.

False Pretenses

A fraudulent and intentional misrepresentation of fact made by one person to another to induce the other to give up some valuable thing or relinquish a legal right.