If the Aggregate Demand Curve and the Aggregate Supply Curve

question 53

Multiple Choice

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

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

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