An Inflationary Output Gap Exists When the Current Level of Output

question 46

Multiple Choice

An inflationary output gap exists when the current level of output is _______ full employment GDP.

• A) below
• B) above
• C) equal to
• D) decreasing rapidly relative to

---

Definitions:

Right-Hand-Drive Cars

Vehicles configured with the steering wheel and controls on the right side, designed for use in countries where traffic drives on the left side of the road.

Market Attractiveness

An assessment of the potential profitability and opportunities within a specific market or industry segment.

Customer Needs

Requirements or desires that consumers express through their buying behavior, which drive demand for products or services.

No Economical Access To Buyers

A situation where sellers cannot reach potential customers in a cost-effective manner, often due to high distribution costs or market barriers.