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Which of the following is true? i. A negative output gap indicates there's slack in the economy as resources are being underutilized. The economy is
Which of the following is true? i. A negative output gap indicates there's slack in the economy as resources are being underutilized. The economy is performing below potential. ii. If real GDP is less than potential GDP policy to be adpted is increase government expenditure and/or decrease taxes. iii. In the long run macroeconomic equilibrium real GDP not equal potential GDP
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