Question

Closing a recessionary gap could cause which of the following to occur? stagflation seasonal unemployment Cost-Push...

Closing a recessionary gap could cause which of the following to occur?

stagflation

seasonal unemployment

Cost-Push inflation

Demand-Pull inflation

A change in consumption will cause

a change in AD

a change in PL

a change in RGDP

all of these should change, ceteris paribus

Tax increases, terrorist attacks, and natural disasters are examples of

potential outputs

adverse supply shocks

beneficial supply shocks

expansionary gaps

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Answer #1

a) "D"

It will cause a demand pull inflation in the market.

b) "D"

All of this will change ceteris paribus.

c) "B"

They are an example of adverse supply shock.

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