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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When one currency appreciates, another currency must depreciate
a. True b. False Indicate whether the statement is true or false
Economics
If an increase in the minimum wage increases workers' incomes by $75 and reduces employers' incomes by $100, while workers' spend all of their income increase but employers reduce their spending by only eighty percent of their income reduction, aggregate spending
A. falls by $25. B. falls by $80. C. falls by $5. D. remains unchanged.
Economics