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

How would you evaluate the quality of this equation overall? Do you have any concerns? Explain

What will be an ideal response?

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Economics

College tuition costs have risen faster than prices in general from 1979 to 2009.

Answer the following statement true (T) or false (F)

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Economics

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.