For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n):
A. Expansionary output gap.
B. Recessionary output gap.
C. Decrease in potential output.
D. Increase in potential output.

Question

18-06-2024
Business

Answered

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For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n):
A. Expansionary output gap.
B. Recessionary output gap.
C. Decrease in potential output.
D. Increase in potential output.

Sagot :

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For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n):A. Expansionary output gap.B. Recessionary output gap.C. Decrease in potential output.D. Increase in potential output.

Sagot :

Other Questions

For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n):
A. Expansionary output gap.
B. Recessionary output gap.
C. Decrease in potential output.
D. Increase in potential output.