The Amount by Which the Equilibrium Level of Real GDP

question 5

Multiple Choice

The amount by which the equilibrium level of real GDP is less than the long-run equilibrium level as given by LRAS is referred to as

• A)a contractionary gap.
• B)economic growth.
• C)the amount by which taxes should be increased in order to put the brakes on run-away inflation.
• D)an inflationary gap.

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