question archive The country of Bree is experiencing a contractionary output gap
The country of Bree is experiencing a contractionary output gap
Subject:EconomicsPrice: Bought3
The country of Bree is experiencing a contractionary output gap. Other things equal, what will be the effect over time of the output gap on the inflation rate in Bree? O The contractionary gap will cause inflation to increase. O The contractionary gap will cause inflation to fall. O The inflation rate will be unaffected by the contractionary gap. O The inflation rate will initially fall, but eventually increase to its original level. O The inflation rate will initially rise, but eventually decrease to its original level.
