Why does an inflationary output gap lead to increased price levels? O a. Demand is too high O b. Capital and labor are fixed in the short-run Potential GDP is too low O d. The government increases price levels O e. Supply is too low

Why does an inflationary output gap lead to increased price levels? O a. Demand is too high O b. Capital and labor are fixed in the short-run Potential GDP is too low O d. The government increases price levels O e. Supply is too low

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 7QR

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