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An Inflationary Gap Is the Amount by Which

Question 126

Multiple Choice

An inflationary gap is the amount by which


A) real GDP exceeds potential GDP.
B) potential GDP exceeds real GDP.
C) the price level must adjust to achieve full employment.
D) aggregate demand must increase to achieve full employment at a given price level.
E) potential GDP must increase to achieve full employment at a given price level.

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