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Which of the Following Occurs If an Economy Experiences an Inflationary

Question 153

Multiple Choice

Which of the following occurs if an economy experiences an inflationary gap?
I. Actual real GDP is less than potential output.
II. Actual real GDP is greater than potential output.
III. Unemployment is less than the natural rate.
IV. Unemployment is greater than the natural rate.


A) I and III
B) I and IV
C) II and III
D) II and IV

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