An Economy Experiencing an Expansionary Gap _____

Multiple Choice

An economy experiencing an expansionary gap _____

A) operates in an environment in which labor shortages drive up money wages, real wages, and prices.
B) has an excess supply of labor due to rising money wages and prices.
C) will self-correct as money wages decrease faster than rising prices.
D) will experience rising money wages and prices but falling real wages.
E) will have excessive involuntary unemployment.