An economic boom that creates an inflationary gap is usually followed later by

A. falling prices.
B. a period of stagflation.
C. an increase of potential GDP.
D. an increase in aggregate supply.

Answer: B

Economics

You might also like to view...

Fill in the blank: Other things constant, the introduction of generic (non-brand name) drugs on the market tends to ________ the price elasticity of demand for brand name drugs

A) increase B) decrease C) leave unchanged D) alter for the better

Economics

Wartime mobilization during World War I raised the shares of income going to labor. This increase continued through the 1920s

Indicate whether the statement is true or false

Economics