Which of the Following Is True of an Inflationary Gap

Multiple Choice

Which of the following is true of an inflationary gap?

A) People are trying to buy more than the economy can produce on a sustainable basis.
B) The level of aggregate demand is equal to Potential GDP.
C) The level of aggregate demand is greater than the level of aggregate supply.
D) It is often described as "too much money chasing too many goods."
E) It is often described as "too little money chasing too many goods."