An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease

Answer: D

Economics

You might also like to view...

Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is

A) the United Kingdom. B) India. C) Canada. D) Russia. E) the United States.

Economics

The United States has the largest percentage of foreigners in its overall population of any nation

Indicate whether the statement is true or false

Economics