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.
b
Economics
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Very recently, the debt-to-GDP ratio has been:
a. higher than usual. b. lower than usual. c. stabilized. d. volatile.
Economics
Which of the following would increase the government purchases component of U.S. GDP?
A. The U.S. federal government pays $3 billion in pensions to government workers. B. The U.S. federal government pays $3 billion in interest to foreign holders of U.S. government bonds. C. The U.S. federal government pays $3 billion in interest on the national debt. D. The U.S. federal government pays $3 billion in salaries to soldiers in the military.
Economics