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    Economics Principles and Policy Study Set 2
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    Exam 25: Demand-Side Equilibrium: Unemployment or Inflation
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    An Inflationary Gap Will Exist When the Full Employment Level
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An Inflationary Gap Will Exist When the Full Employment Level

Question 210

Question 210

Multiple Choice

An inflationary gap will exist when the full employment level of GDP is


A) equal to equilibrium GDP.
B) greater than equilibrium GDP.
C) less than equilibrium GDP.
D) greater than disposable income.

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