When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap.
B) a below-full-employment equilibrium.
C) a recessionary gap.
D) None of the above answers are correct.
Correct Answer:
Verified
Q242: If real GDP is less than potential
Q243: The Great Depression, in which real GDP
Q244: A below-full-employment equilibrium
A) is not possible in
Q245: Suppose the economy is experiencing a recessionary
Q246: Starting at full employment, a business cycle
Q248: An above-full-employment equilibrium is
A) a theoretical possibility
Q249: Inflation occurs over time as a result
Q250: Business cycles are the result of
A) regular
Q251: If the aggregate demand curve shifts _
Q252: If aggregate demand decreases and neither short-run
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents