In an inflationary expenditure gap, the equilibrium level of real GDP is
A)greater than planned investment.
B)equal to full-employment GDP.
C)greater than full-employment GDP.
D)less than full-employment GDP.

Question

Quizplus · Accepted Answer

In an inflationary expenditure gap, the equilibrium level of real GDP exceeds the full-employment GDP, leading to upward pressure on prices.

In an Inflationary Expenditure Gap, the Equilibrium Level of Real