If Short-Run Equilibrium Output Equals 50,000 and Potential Output (Y*)equals

question 110

Multiple Choice

If short-run equilibrium output equals 50,000 and potential output (Y*) equals 45,000, then this economy has a(n) ________ gap that can be closed by ________.

• A)expansionary; decreasing taxes
• B)expansionary; increasing transfer payments
• C)expansionary; decreasing government purchases
• D)recessionary; increasing government purchases

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A situation where an individual's or entity's personal interests could improperly influence the performance of their official duties and responsibilities.

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Business Opportunity

An economic idea or investment that has potential for profit or provides an avenue for a successful venture.

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