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Starting from Potential Output, If Firms Become More Optimistic About

question 155

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Starting from potential output, if firms become more optimistic about the future and decide to increase their investment in new capital, then this will generate a(n) ________ gap and inflation will ________.


Definitions:

Research Design

A detailed plan or strategy outlining how a research project will be conducted, including methods for collecting and analyzing data.

Informed Consent

A process in research and healthcare where individuals are given information about a procedure or study, understanding the risks and benefits before agreeing to participate.

Sample Frame

A list or database from which a sample is drawn for research, representing the larger population intended to be analyzed.

Research Design

The framework or plan for a study that guides the collection and analysis of data, determining the type, sources, and methods of data gathering and analysis.

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