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If an Economy Initially Has No Output Gap and Then

question 113

Multiple Choice

If an economy initially has no output gap and then reduces tariffs against the imports of its trading partners,the lower tariffs will cause net exports to ________,planned aggregate expenditure to ________,and a(n) ________ gap to develop.


Definitions:

Sales Forecast

An estimate of the amount of products or services a company expects to sell in a future period, which is crucial for budgeting and planning purposes.

Net Operating Income

The profit a company makes from its regular business operations, excluding expenses and revenue from non-operational activities.

Price Hike

A general increase in the cost of goods and services, often due to inflation or increased production costs.

Unit Sales

The total units of a product that a company sells in a particular period.

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