When real GDP exceeds potential GDP, then the economy has
A) a recessionary gap.
B) an inflationary gap.
C) a below full-employment equilibrium.
D) None of the above answers are correct.
Correct Answer:
Verified
Q234: Over time in a growing economy, the
Q235: Q236: When an increase in aggregate demand exceeds Q237: Which of the following can be said Q238: Inflation occurs over time as a result Q240: An inflationary gap is occurs when Q241: An economy is at full employment. Which Q242: If aggregate demand decreases and neither short-run Q243: A recessionary gap occurs when Q244: An above full-employment equilibrium occurs when
A) the
A) nominal GDP
A) the
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