When the Economy Is at an Above Full-Employment Equilibrium, ____________

question 249

Multiple Choice

When the economy is at an above full-employment equilibrium, ____________.

• A) a recessionary gap exists
• B) nominal GDP exceeds real GDP
• C) real GDP is less than potential GDP
• D) an inflationary gap exists

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Definitions:

Domestic Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied by domestic producers.

Domestic Demand Curves

Graphs showing the quantity of a good that consumers in a domestic market are willing and able to purchase at various prices.

Import Demand Curves

Charts representing the volumes of a product that an economy is ready to import at various price points.

Export Supply Curves

A graphical representation showing the relationship between the quantity of a good that producers are willing to export and the price of the good in the international market.