Kind of gap inflationry or recesssionary


What kind of gap inflationry or recesssionary will the economy face after

a. a stock market boom increased the value of stock held by households.

b. Firms come to believe that a recession in the near future is likely.

c. Anticipating the possibility of war the government increases it purchases of military equipmwnt.

d. The quantity of money in the economy declines and interest rates increase.

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Microeconomics: Kind of gap inflationry or recesssionary
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