Multiple Choice
An inflationary gap is created when
A) real GDP is greater than potential GDP.
B) real GDP equal to potential GDP.
C) the inflation rate is less than potential inflation.
D) the price level exceeds the equilibrium price level.
E) potential GDP is greater than real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q198: When potential GDP increases,the potential GDP line
Q199: A change in any component of aggregate
Q200: Changes in which of the following shifts
Q201: An increase in government expenditure on goods
Q202: If real GDP is less than potential
Q204: A fall in the price level brings
Q205: An increase in the price level leads
Q206: _ decreases aggregate supply.<br>A)An increase in potential
Q207: Moving along the aggregate supply curve,<br>A)the quantity
Q208: Which of the following does NOT shift