When there is an inflationary gap:
a. Unemployment exceeds the natural rate of unemployment.
b. Unemployment equals the natural rate of unemployment
c. Unemployment is less than the natural rate of unemployment.
d. Any of the above is possible.
c
Economics
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The ________ the reserve ratio, the ________ the money multiplier
A) larger; larger B) smaller; smaller C) smaller; larger D) None of the above are correct.
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Which of the following makes it more difficult for an incumbent to successfully engage in limit pricing?
A. Learning curve effects B. Commitment mechanisms C. A firm's past reputation for being tough on entrants D. Complete information
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