When an Expansionary Gap Exists,actual Output _________ Potential Output and the Rate

question 205

Multiple Choice

When an expansionary 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:

Agoraphobia

An irrational fear of being in a situation where escape might be difficult or impossible.

Adolescents

Individuals in the developmental stage between childhood and adulthood, typically ranging from ages 10 to 19, known for significant psychological and physical changes.

Heights

Measurements of distance from the bottom to the top of something or the elevated distance of a place or object above a reference point, often causing fear in some individuals.

Weather

The state of the atmosphere at a particular place and time, including temperature, humidity, wind, and precipitation conditions.