An Economy in Which Actual GDP Is $10 Billion Below

Multiple Choice

An economy in which actual GDP is $10 billion below potential GDP

A) is experiencing an expansionary gap
B) will have the short run aggregate supply shifting outward,if the passive approach is correct
C) will typically have the short-run aggregate supply curve shifting to the left
D) will likely have falling prices but rising wages
E) will experience stagflation (i.e.,rising prices and falling output)