An Increase in Potential Output Will Result In

question 78

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

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Definitions:

Deescalate

The process of reducing the intensity of a conflict or potentially volatile situation, aiming to prevent it from worsening or leading to aggressive outcomes.

Groupthink

A psychological phenomenon where the desire for group consensus overrides people's common sense or logical reasoning.

Devil's Advocacy

A technique used in decision making and problem solving that involves taking an opposing viewpoint or position to uncover flaws or test the validity of a proposal.

Dialectical Inquiry

A debate between two opposing sets of recommendations.