Which of the Following Is True of an Expansionary Gap

question 1

Multiple Choice

Which of the following is true of an expansionary gap?

• A)It develops when the expected price level exceeds the actual price level.
• B)In the long run,this gap will close when resource suppliers negotiate lower resource payments.
• C)It measures the amount by which actual output falls short of the economy's potential.
• D)In the long run,this gap will close when the short-run aggregate supply curve shifts rightward.
• E)In the long run,this gap will close when resource suppliers negotiate higher resource payments.

---

Definitions:

Episodic Memory

The retention of information about the where, when, and what of life’s happenings—that is, how individuals remember life’s episodes.

Central Executive

A component of working memory in cognitive psychology that controls and regulates cognitive processes, directing attention and managing tasks.

Working Memory

A cognitive system with a limited capacity, responsible for temporarily holding information available for processing and decision-making.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically a few seconds to a minute.