Question: When no output gap exists actual output ________ potential output and the rate of inflation will tend to ________. a) exceeds; decrease b) is less

When no output gap exists actual output ________ potential output and the rate of inflation will tend to ________.

a) exceeds; decrease

b) is less than; decrease

c) equals; remain the same

d) exceeds; increase

( need answer asap no explanation needed)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

When no output gap exists actual output _____ potential output and the rate of inflation will tend to ______. Multiple Choice exceeds; increase exceeds; decrease is less than; decrease equals; remain...

Q:

Question 1 (1 point) E-II The multiplier principle illustrates that 0 an increase in investment spending will be multiplied into a larger increase in GDP. 0 an increase in GDP will be multiplied into...

Q:

Over the past decade or so, several economic trends have accelerated, affecting the Canadian economy. The 2008-09 global financial crisis and the COVID-19 pandemic have had significant impacts on the...

Q:

Key challenges for the conduct of monetary policy Over the past decade or so, several economic trends have accelerated, affecting the Canadian economy. The 2008-09 global financial crisis and the...

Q:

I need help with these questions. When resource prices are negotiable, the long-run aggregate supply curve is represented by A. an upward-sloping line B. a downward-sloping line C. a vertical line at...

Q:

1) In the short run, macroeconomic analysis focuses on ________, while, in the long run, the focus is on ________. a) fiscal policy; monetary policy B) short-term economic growth; population...

Q:

Instructions: Read the following paragraphs, once read, establish if you agree with the premise or not, remember you must explain why or why not you agree, You must use the A P A format to justify...

Q:

When actual output exceeds potential output: a recessionary gap exists the inflation rate tends to remain the same an expansionary gap exists the inflation rate tends to decrease When actual output...

Q:

Use the graph to answer the question that follows. Based on the accompanying graph, assuming that the velocity of money is constant, between year 1 and year 2, which of the following statements must...

Q:

Hi, Please answer the following questions in the pictures that are circled in blue (the question number is circled). Then provide a typed explanation of each correct answer. Thanks Real Output Peak...

Q:

Show that if A, B, and C are mutually independent, then the following pairs of events are independent: A and (B C), A and (B C), A and (B C). Show also that A, B, and C are mutually independent.

Q:

What factors determine the magnitude of the slope of the LM schedule? That is, what factors determine whether the schedule is steep or flat?

Q:

A brief example is multiple illustrations of a point True False

Q:

ABC, product costing at banks, cross-subsidization. National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. Depositors receive a 7%...

Q:

(Imputation of Interest) Presented below are two independent situations: (a) On January 1, 2011, Spartan Inc. purchased land that had an assessed value of $390,000 at the time of purchase. A...

Q:

Disclosures Required in Various Situations Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination...

Q:

Brubaker Inc., a manufacturer of high-sugar, low-sodium, low-cholesterol frozen dinners, would like to increase its market share in the Sunbelt. In order to do so, Brubaker has decided to locate a...

Q:

Why might it be desirable to operate enterprise funds at a profit?

Q:

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Q:

Tell what you mean without sounding too dominant, i.e. show authority without sounding instructive

Q:

Speak clearly and distinctly with moderate energy

Q:

Get married, do not wait for me