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

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A) proportional income tax B) regressive income tax C) flat-rate income tax D) progressive income tax

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Most less-developed countries are characterized by

a. inadequate manpower b. a high proportion of the population under the age of 15 c. unfertile and uncultivable land d. an extensive infrastructure e. low total productivity but high per capita productivity

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