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

question 74

Multiple Choice

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

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

---

Definitions:

Homo Neanderthalensis

An extinct species of archaic humans that lived in Eurasia until about 40,000 years ago, known for their robust build and large cranial capacity.

Homo Erectus

An extinct species of early human that lived throughout much of the Pleistocene geological epoch, known for its upright walking ability.

Neurons

Unique cells within the nervous system responsible for transferring information to other neural cells, muscular cells, or glands.

Cerebellum

A region of the brain that plays an essential role in motor control, coordination, precision, and timing of movements.