ow is it possible for the economy to have an inflationary gap? a. GDP is falling at full employment. b. Equilibrium is at a GDP level above full employment. c. GDP is rising at full employment. d. Equilibrium is at a GDP level below full employment. e. Equilibrium is at a GDP level equal to full employment.
ow is it possible for the economy to have an inflationary gap? a. GDP is falling at full employment. b. Equilibrium is at a GDP level above full employment. c. GDP is rising at full employment. d. Equilibrium is at a GDP level below full employment. e. Equilibrium is at a GDP level equal to full employment.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How is it possible for the economy to have an inflationary gap?
a.
GDP is falling at full employment.
b.
Equilibrium is at a GDP level above full employment.
c.
GDP is rising at full employment.
d.
Equilibrium is at a GDP level below full employment.
e.
Equilibrium is at a GDP level equal to full employment.
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