Asked by
Bonnie Griner
on Nov 11, 2024
Verified
An expansionary gap in the short-run results in:
A) lower resource prices in the long run.
B) unemployment in the long run.
C) a recessionary gap in the long run.
D) cost-push inflation in the long run.
E) demand-pull inflation in the long run.
Expansionary Gap
A situation in macroeconomics when the output of an economy exceeds the potential output level, typically leading to inflationary pressures.
Recessionary Gap
A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources in an economy.
- Acquire understanding of the influences of expansionary and recessionary gaps during the short-run timeframe.
- Examine the effect that anticipations have on economic results in the short term.
Verified Answer
KU
Learning Objectives
- Acquire understanding of the influences of expansionary and recessionary gaps during the short-run timeframe.
- Examine the effect that anticipations have on economic results in the short term.