When the inflation rate exceeds the expected rate, the economy behaves like it does in a inflation: The price level is higher than expected and real GDP potential GDP.

Fill in the blank(s) with the appropriate word(s)

Answer: Demand-pull; rises above

Economics

Explain the law of diminishing returns

What will be an ideal response?

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Economics

Which factor of production includes water?

A) physical capital B) human capital C) land D) entrepreneurship

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Economics

When the inflation rate exceeds the expected rate, the economy behaves like it does in a ________ inflation: The price level is higher than expected and real GDP ________ potential GDP.