As a Contractionary Gap Is Closed in the Long Run

question 115

Multiple Choice

As a contractionary gap is closed in the long run by firms' actions,

• A)nominal and real GDP both decline
• B)nominal and real GDP both increase
• C)nominal GDP increases but real GDP declines
• D)nominal GDP declines but real GDP increases
• E)real GDP increases,but nominal GDP can increase,decrease,or remain the same

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