What does a positive output gap indicate about the economy? The economy has slack, and the Central Bank will be on the lookout for deflation. The economy is running below its potential, and the Central Bank will be on the lookout for inflation. The economy is running above its potential and the Central Bank will be on the lookout for inflation. FEE me

What does a positive output gap indicate about the economy? The economy has slack, and the Central Bank will be on the lookout for deflation. The economy is running below its potential, and the Central Bank will be on the lookout for inflation. The economy is running above its potential and the Central Bank will be on the lookout for inflation. FEE me

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 3DQ

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