what-is-a-hot-economy-and-what-are-its-effects-on-gdp

Question

What is a 'hot economy' and what are its effects on GDP?

Accepted Answer

An economy operating beyond long-run equilibrium GDP, leading to higher prices

Answer

An economy operating below long-run equilibrium GDP, leading to lower prices

Answer

An economy with decreasing GDP and increasing prices

Answer

An economy with stable GDP and price levels