Answered: What happens when the economy is in an…

What happens when the economy is in an inflationary gap? The money wage rate______ and real GDP OA. falls; decreases OB. rises; decreases C. falls; increases D. rises; increases

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 4CQQ

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Question

What happens when the economy is in an inflationary gap?
The money wage rate
and real GDP
OA. falls; decreases
OB. rises; decreases
OC. falls; increases
OD. rises; increases

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