Stagflation may be caused by:

If the economy is operating below potential output, there is a(n) _____ gap, and _____ fiscal policy is appropriate.

Stagflation may be caused by:

The actual output of the economy is $1,400 trillion, while the potential output is $1,200 trillion. Given this output gap, we have a(n) _____ gap, and the government should implement _____ fiscal policy.

The actual output of the economy is $1,200 trillion, while the potential output is $900 trillion. Given this output gap, we have a(n) _____ gap, and the government should _____ transfers to help close the output gap.

An economy experiencing an inflationary gap will return to equilibrium when there is _____ pressure on wages, shifting the _____.

Which of the following will shift aggregate demand to the left?

The Transcendentalists chose to focus on evil and darkness rather than positive aspects of life.

prep third exam.png This exam covers the material from Weeks 5 and 6. To help you prepare, you have unlimited attempts at this exam. Each attempt has a 120-minute time limit. This exam is proctored through Honorlock. I encourage you to take it as many times as needed to master the content. Use this opportunity to familiarize yourself with the question formats and solidify your understanding before taking the second official exam. Good luck, and make the most of this chance to excel!

To close a recessionary gap with fiscal policy, the government could: