Why does an inflationary output gap lead to increased price levels? A. The government increased price levels B. The supply of capital and labor are fixed in the short run C. Potential GDP is too low D. Dupply is too low E. Demand is too high
Why does an inflationary output gap lead to increased price levels? A. The government increased price levels B. The supply of capital and labor are fixed in the short run C. Potential GDP is too low D. Dupply is too low E. Demand is too high
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Why does an inflationary output gap lead to increased price levels? A. The government increased price levels B. The supply of capital
and labor are fixed in the short run C. Potential GDP is too low D. Dupply is too low E. Demand is too high
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