Output gaps are caused by inflationary pressures

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Reference no: EM131009984

All of the following are correct, except?

A. Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy.

B. A low level of aggregate spending can cause real GDP to fall below potential output.

C. When spending is high, output may rise above potential output.

D. Government policies can help to eliminate output gaps.

Reference no: EM131009984

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