What does a positive output gap indicate about the economy? The economy has slack, and the Central Bank will be on the lookout for deflation. The economy is running below its potential, and the Central Bank will be on the lookout for inflation. The economy is running above its potential and the Central Bank will be on the lookout for inflation. FEE me
What does a positive output gap indicate about the economy? The economy has slack, and the Central Bank will be on the lookout for deflation. The economy is running below its potential, and the Central Bank will be on the lookout for inflation. The economy is running above its potential and the Central Bank will be on the lookout for inflation. FEE me
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 8PA
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