If the Economy Is Experiencing an Inflationary Gap in the Short

question 83

Multiple Choice

If the economy is experiencing an inflationary gap in the short run, an increase in the budget surplus

• A)will reduce the size of the inflationary gap.
• B)will increase the size of the inflationary gap.
• C)will cause an increase in inflation and increase aggregate supply.
• D)will increase aggregate demand and will increase the price level.

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Definitions:

Minor Children

Individuals under the age of majority, typically under 18, not having the full legal rights of adults.

Void

Having no legal force or effect; null and totally ineffective.

Breach of Contract

The omission of performing any clause of an agreement, whether written or orally communicated, without a defensible legal excuse.

Payments

The act of transferring money or other valuable consideration from one party to another as a fulfillment of a legal obligation or for the acquisition of goods or services.