If actual output exceeds potential output, eventually:
A. input prices will rise and output w...
Business, 13.02.2020 05:56 ringo12384
If actual output exceeds potential output, eventually:
A. input prices will rise and output will fall.
B. both input prices and output will rise.
C. input prices will fall and output will rise.
D. both input prices and output will fall.
In an inflationary gap, the demand for inputs is high, causing input prices to rise. As input prices rise, sodo output prices, and this causes a decrease in aggregate demand and output
Answers: 2
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