-An Inflationary Gap Means That the Level of Real GDP

question 56

Multiple Choice

-An inflationary gap means that the level of real GDP at the short-run macroeconomic equilibrium

• A) is less than full-employment GDP.
• B) equals full-employment GDP.
• C) is more than full-employment GDP.
• D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.

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