If the Aggregate Demand Curve and the Aggregate Supply Curve

question 62

Multiple Choice

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP less than potential GDP, there is

• A)an inflationary gap.
• B)an above full-employment equilibrium.
• C)a rising price level.
• D)a recessionary gap.
• E)a falling real GDP.

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