Output in excess of potential GDP
a) implies a negative output gap
b) describes a recession
c) is impossible
d) is unsustainable
e) creates deflation
d) is unsustainable
Economics
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According to the Taylor rule ________
A) expectations are formed in an adaptive fashion B) the central bank should set its federal funds rate target by a formula that puts weight on both output and inflation gaps C) a constant growth rate rule for money should be adopted D) expectations should be formed consistent with the model of rational expectations
Economics
The most liquid asset is ________
A) stocks B) bonds C) cash D) real estate E) none of the above
Economics