Multiple Choice
An inflationary gap occurs when
A) aggregate demand falls, but other things remain constant.
B) short-run aggregate supply falls, but other things remain constant.
C) the short-run equilibrium level of real GDP is greater than long-run aggregate supply.
D) the short-run equilibrium level of real GDP is less than long-run aggregate supply.
Correct Answer:
Verified
Correct Answer:
Verified
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