If the SRAS curve intersects the AD curve to the right of Natural Real GDP,the economy is

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When the SRAS curve intersects the AD curve to the right of the natural real GDP, it suggests that the economy is producing above its potential output, indicating an inflationary gap. An inflationary gap implies that there is a shortage of goods and services to satisfy the demand, which leads to higher prices and inflation.

If the SRAS Curve Intersects the AD Curve to the Right