Ask Question
22 June, 17:20

Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except: a positive demand shock. a negative inflation shock. a decrease in taxes. an increase in the money supply.

+1
Answers (1)
  1. 22 June, 17:29
    0
    a negative inflation shock.

    Explanation:

    Suppose the economy is currently operating at potential output; an expansionary gap may be caused by a positive demand shock, a decrease in taxes, an increase in the money supply except a negative inflation shock.

    A negative inflation shock which is a decrease in the general price level of goods and services, usually results in an increase in the inflation rate, thereby causing a recessionary gap.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except: a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers