When real GDP exceeds potential GDP, then the economy is in
A) below full- employment equilibrium.
B) a trough.
C) an inflationary gap situation.
D) a recessionary gap situation.
Correct Answer:
Verified
Q262: The country of Mu has continuous strong
Q263: Economic growth
A) is an increase in potential
Q264: Starting at full employment, a business cycle
Q265: Inflation occurs over time as a result
Q266: If real GDP exceeds potential GDP,
A) there
Q268: When an increase in aggregate demand exceeds
Q269: The business cycle is actually a continuous
Q270: An inflationary gap is occurs when
A) real
Q271: If aggregate demand grows only slightly faster
Q272: Economic growth is best defined as
A) rightward
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