When Actual Output Is Less Than Potential Output, There Is

question 47

Multiple Choice

When actual output is less than potential output, there is ______ output gap and the inflation rate will ____.

• A)an expansionary; exceed the expected rate of inflation
• B)an expansionary; be lower than the expected rate of inflation
• C)a recessionary; be lower than the expected rate of inflation
• D)a recessionary; exceed the expected rate of inflation

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Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract according to the precise terms agreed upon, rather than paying damages for failing to do so.

Unique Goods

Items that are rare, one of a kind, or have distinctive qualities making them of special interest.

Remedy At Law

Legal means to enforce a right or redress a harm, typically involving monetary compensation rather than equitable relief.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, aiming to harmonize the law of sales and other commercial transactions across American states.