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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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