Suppose the economy is in equilibrium with an output gap equal to zero and the actual inflation rate equals the expected inflation rate
If the economy experiences a negative demand shock, real GDP will become ________ potential GDP and the economy will move to the ________ along an existing Phillips curve. A) greater than; right
B) greater than; left
C) less than; right
D) less than; left
D
Economics
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Which of the following is the last step in the model-building process?
a. Develop a model based on simplified assumptions. b. Collect data and test the model. c. Identify the problem. d. Formulate an assumption.
Economics
Which of the following is an example of a nondurable good?
a. A Sport Utility Vehicle b. A Bag of Cookies c. A Dishwasher d. None of the above are examples of nondurable goods.
Economics