An inflationary gap occurs when

Assignment Help Business Economics

Reference no: EM131380603

1-Which is? true?

A. ?Cost-push inflation leads to stagflation.

B. All of these are true.

C. A depreciation of a? country’s currency could cause? demand-pull inflation.

D. ?Demand-pull inflation is the most common form of inflation.

2-Which is true in the aggregate supply? / aggregate demand? model?

A.The short run aggregate supply curve is? upward-sloping.

B.All of these.

C.The aggregate demand curve is vertical.

D.The long run aggregate supply curve is? downward-sloping.

3-Contractionary fiscal policy would consist of

A.increasing government spending? and/or decreasing taxes.

B.decreasing government spending? and/or increasing taxes.

C.increasing government spending? and/or increasing taxes.

D.decreasing government spending? and/or decreasing taxes.

4-An inflationary gap occurs when

A.actual real GDP is greater than potential real GDP.

B.the long run equilibrium is above the short run equilibrium.

C.All of these are true.

D.the current output level is below the full employment level of production.

Reference no: EM131380603

Questions Cloud

Congress votes to decrease corporate income tax rates : Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning. What exactly causes AD and/or AS to shift? What happens ..

Model the average improvement in customer loyalty : Use a single RANDBETWEEN random variable to model the average improvement in customer loyalty created by the quality improvement.

Research methodologies : The assignment writing process should involve the followings: Introduction, Explain what is research methodologies, - What issue(s)/problem(s) chosen? Justify the choice, - Scope of research e.g. examine xx, followed by yyy, then ending with recommen..

Analyse and research an area related to your degree subject : For this assignment, you are required to work with your Academic Advisor and complete a piece of independent research. You will analyse and research an area related to your degree subject.

An inflationary gap occurs when : An inflationary gap occurs when. Which is true in the aggregate supply? / aggregate demand? model? Contractionary fiscal policy would consist of

Develop a branding strategy and marketing communication plan : This assignment is designed to help students understand the interrelationships between brand strategy and the communication message to the target audience. It is a continuation of the marketing plan and students should review the Week 3 Learning T..

Whether to give incentive this year to buyers of chevy : GM wants to determine whether to give a $1,000 incentive this year to buyers of Chevy Malibus. Here is relevant information for the base case:

Discuss the importance of theory in quantitative research : Discuss the importance of theory in quantitative research. By comparison, how different is the use of theory in qualitative research? What are the factors that make theory use in mixed method studies unique, and why

How the optimal level of retention and acquisition spending : Use SolverTable to determine how the optimal level of retention and acquisition spending in Exercise 1 varies with an increase in annual profit.

User Account

All Pages