question archive In the AD and AS model which of the following best describes the effects of an increase in potential output
In the AD and AS model which of the following best describes the effects of an increase in potential output
Subject:EconomicsPrice: Bought3
In the AD and AS model which of the following best describes the effects of an increase in potential output. O There is an expansionary gap in the short-run, but higher real GDP and lower inflation in the long-run. O There is an expansionary gap in the short-run, but higher real GDP and higher inflation in the long-run. O There is a contractionary gap in the short-run, but higher real GDP and lower inflation in the long-run. O There is a contractionary gap in the short-run, but higher real GDP and higher inflation in the long-run. O Real GDP increases in both the short-run and the long-run and inflation falls in the long-run.
