Author Question: The short run is a period of time during which: a. there is an expansionary gap that cannot be ... (Read 29 times)

fnuegbu · **on:** Jun 30, 2018

The short run is a period of time during which:
a. there is an expansionary gap that cannot be corrected using the passive approach.
b. actual output equals potential output.
c. there is a recessionary gap that cannot be corrected through discretionary policy.
d. resource buyers and sellers cannot adjust fully to changes in the price level.
e. resource buyers and sellers can adjust fully to changes in the price level.

Question 2

When people exchange money for financial assets, the _____ rises.
a. real GDP
b. price level
c. unemployment rate
d. nominal GDP
e. interest rate