An Inflationary Gap Is the Amount by Which

question 83

Multiple Choice

An inflationary gap is the amount by which

• A)potential GDP exceeds real GDP.
• B)demand must increase to achieve full employment at a given price level.
• C)supply must increase to achieve full employment at a given price level.
• D)the price level must adjust to achieve full employment.
• E)real GDP exceeds potential GDP.

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Definitions:

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