If Equilibrium Level of Real Gross Domestic Product (GDP) Is

Multiple Choice

If equilibrium level of real Gross Domestic Product (GDP) is greater than the full-employment real Gross Domestic Product (GDP) consistent with the position of the economy's long-run aggregate supply (LRAS) curve, then the difference between full-employment real Gross Domestic Product (GDP) and current equilibrium real Gross Domestic Product (GDP) is

A) an aggregate demand shock.
B) the level of output consistent with natural unemployment.
C) a recessionary gap.
D) an inflationary gap.