If the Economy Is in an Expansion, It Is Likely

Multiple Choice

If the economy is in an expansion, it is likely that

A) the economy is not in equilibrium and is therefore not on the aggregate demand curve.
B) the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is less than potential GDP.
C) the aggregate demand curve and the inflation adjustment line do not intersect.
D) the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is higher than potential GDP.
E) aggregate expenditures are unequal to real GDP.