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

---

Definitions:

Acquisition Value

The total cost incurred to acquire an asset, including the purchase price and all other expenses directly tied to the acquisition process.

Certified Public Accountant

A designation given to accounting professionals in numerous countries around the globe, indicating they have passed a licensure examination and met statutory and licensing requirements.

Management

The process of directing and controlling a group of individuals or an organization to reach a goal.

Code Letter

A symbol or series of symbols used to represent instructions, data, or references in a programming or data structure context.