An Inflationary Gap Is Occurs When

question 101

Multiple Choice

An inflationary gap is occurs when

• A) real GDP is less than potential GDP.
• B) real GDP exceeds potential GDP.
• C) real GDP equals potential GDP.
• D) the economy is at full employment.

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Definitions:

Scientific Methods

Systematic processes for experimentation and observation used to gather empirical evidence and establish or validate theories and principles.

Possible Selves

Cognitive representations of the kind of people we think we might become some day.

Construe the World

To construe the world means to interpret or understand the world and the events within it through a personal or theoretical lens.

Personal Constructs

Theoretical constructs proposed by George Kelly, suggesting that people develop personal systems of belief that they use to understand and interpret the world around them.