Of the following, identify the incorrect statement. a. Output gaps are caused by inflationary pressures generated by

Question:

Of the following, identify the incorrect statement.
a. Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy.
b. A low aggregate spending can make output to fall below potential output.
c. When spending is high, output may rise above potential output.
d. Government policies can help to eliminate output gaps.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

Question Posted: