The Language of Output Gaps - Recessionary Gaps and Inflationary

question 189

Multiple Choice

The language of output gaps - recessionary gaps and inflationary gaps -

• A) applies only to outcomes of demand shocks.
• B) applies only to outcomes of supply shocks.
• C) applies to outcomes of both demand shocks and supply shocks.
• D) does not apply to outcomes of demand shocks or supply shocks.
• E) applies only to economic growth.

---

Definitions:

High Frequency

Pertaining to or involving very short intervals of time or occurring at a rapid rate.

Automatic System

Cognitive processes that occur without conscious control or deliberation, typically fast and efficient, handling tasks such as perception, encoding, and simple decision-making.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness.

Brain

The organ located in the head of an animal that coordinates its behavior and processes sensory information; it's the center of the nervous system in humans and other vertebrates.