As an Expansionary Gap Is Closed in the Long Run

question 162

Multiple Choice

As an expansionary gap is closed in the long run by firms' actions,

• A)output decreases and the price level increases
• B)inflation decreases and unemployment rises
• C)both output and the price level increase
• D)both output and the price level decrease
• E)inflation rises and unemployment decreases

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Definitions:

Participate

To take part or become involved in an activity or event.

Interview

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Internal Factors

Elements within a company that influence its ability to achieve its goals, including staff morale, organizational culture, and internal policies.

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