When a Recessionary Gap Exists,actual Output _________ Potential Output and the Rate

question 63

Multiple Choice

When a recessionary gap exists,actual output _________ potential output and the rate of inflation will tend to __________.

• A) is greater than;increase
• B) is greater than;decrease
• C) equals;remain the same
• D) is less than;increase
• E) is less than;decrease

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Definitions:

Critical-Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Interpersonal Skill

The ability to communicate or interact well with other people, crucial for effective personal and professional relationships.

Transferable Skill

A skill acquired in one context that is applicable or valuable in another context.

Leadership

The action of leading a group of people or an organization.