An Inflationary Gap Occurs When

question 58

Multiple Choice

An inflationary gap occurs when:

• A) when prices rise in the economy
• B) potential GDP exceeds actual GDP
• C) full employment GDP exceeds national expenditure
• D) national expenditure exceeds full employment GDP

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Definitions:

Profit-Sharing Program

A company policy where employees receive a share of the company's profits, typically distributed as bonuses or retirement funds.

Flexible/Medical Savings Account

A type of savings account that allows individuals to set aside pre-tax money for eligible healthcare expenses.

401(k)

A retirement savings plan sponsored by an employer that allows workers to save and invest a piece of their paycheck before taxes are taken out.

Sigmoidoscopy

A medical examination of the lower part of the colon using a flexible tube with a light and camera at the end.