An economy in which actual GDP exceeds potential GDP means that
A)wages and prices must fall
B)self-correcting forces will shift the SRAS curve to the left
C)self-correcting forces will shift the AD curve to the left
D)inflation will occur when AD shifts to the left
E)unemployment is likely to be unusually high

Question

Quizplus · Accepted Answer

The Answer of An economy in which actual GDP exceeds potential GDP means that
A)wages and prices must fall
B)self-correcting forces will shift the SRAS curve to the left
C)self-correcting forces will shift the AD curve to the left
D)inflation will occur when AD shifts to the left
E)unemployment is likely to be unusually high

An Economy in Which Actual GDP Exceeds Potential GDP Means