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    Economics Principles and Policy Study Set 1
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    Exam 26: Demand-Side Equilibrium: Unemployment or Inflation
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    If the Expenditure Schedule Lies Above the Level of Potential
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If the Expenditure Schedule Lies Above the Level of Potential

Question 86

Question 86

Multiple Choice

If the expenditure schedule lies above the level of potential GDP, then there is a(n)


A) recessionary gap.
B) precautionary gap.
C) deflationary gap.
D) inflationary gap.

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