If Full Employment GDP Is Greater Than Equilibrium GDP There

question 265

Multiple Choice

If full employment GDP is greater than equilibrium GDP there is

• A)an inflationary gap.
• B)a deflationary gap.
• C)both an inflationary gap and a deflationary gap.
• D)neither an inflationary gap nor a deflationary gap.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Other Assets

Non-current assets that do not fit into the standard categories of fixed assets, investments, or intangible assets, usually including long-term receivables and deferred charges.

Remaining Assets

Assets that are left over after certain liabilities or expenses have been deducted.