When there is an inflationary gap:
a. Real output exceeds the natural level of real output.
b. Real output equals the natural level of real output
c. Real output is less than the natural level of real output.
d. Any of the above is possible.
b
Economics
You might also like to view...
As the circular flow model shows, the factors of production flow from
A) households to firms through the factor market. B) firms to households through the goods market. C) the goods market through firms to the factor markets. D) households to firms through the goods market. E) firms to households through the factor market.
Economics
Which of the following is a method for solving the problem of adverse selection?
A) truth in advertising laws B) product liability laws C) food labeling requirements D) All of the above.
Economics