Multiple Choice
If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP less than potential GDP, there is
A) an inflationary gap.
B) falling real GDP.
C) an above full-employment equilibrium.
D) a recessionary gap.
E) a rising price level.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q24: If the equilibrium price level is 135
Q25: Suppose the exchange rate in the year
Q26: Which of the following produces a movement
Q27: When the price level increases there is
Q28: If profits are high because the price
Q30: An economy is at a full-employment equilibrium,
Q31: When the quantity of real GDP demanded
Q32: If the price level falls and the
Q33: The line showing potential GDP is a
Q34: If the price of widgets is $2