Consider an economy starting from a position of full employment. What will happen if, ceteris paribus, 1) consumer confidence in the economy decreases and, at the same time and independently, 2) the prices of some key raw materials suddenly increase? Select one: а. An inflationary gap will result b. The price level for sure will decrease С. The effect on GDP will be uncertain

Consider an economy starting from a position of full employment. What will happen if, ceteris paribus, 1) consumer confidence in the economy decreases and, at the same time and independently, 2) the prices of some key raw materials suddenly increase? Select one: а. An inflationary gap will result b. The price level for sure will decrease С. The effect on GDP will be uncertain

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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