Multiple Choice
When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP,the economy is suffering from ________,and the government policy to eliminate this gap will ________ real GDP and ________ the price level.
A) an inflationary gap;increase;increase
B) a recessionary gap;decrease;decrease
C) an inflationary gap;increase;decrease
D) a recessionary gap;increase;decrease
E) an inflationary gap;decrease;decrease
Correct Answer:
Verified
Correct Answer:
Verified
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