During an Inflationary Gap

question 294

Multiple Choice

During an inflationary gap,

• A)real GDP is less than potential GDP.
• B)the aggregate demand curve and the aggregate supply curve intersect at potential GDP.
• C)the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP that exceeds potential GDP.
• D)the aggregate demand curve and the aggregate supply curve do not intersect.
• E)the price level will fall to restore the long-run equilibrium.

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Definitions:

C2C

Consumer to Consumer, or C2C, is a business model that facilitates the transaction of products or services between consumers through a third-party platform or marketplace, typically online.

B2C

Refers to Business to Consumer, a business model in which businesses sell products or services directly to consumers.

B2B

Business-to-business, a commercial transaction between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

C2B

Consumer-to-Business, a business model where consumers create value and businesses consume that value; for example, customer reviews or selling products online to companies.