If the economy experiences an unplanned inventory accumulation at the full employment level of GDP, then the economy is in a(n)

A. inflationary gap.
B. hyperinflation.
C. recessionary gap.
D. full employment gap.


Answer: C

Economics

You might also like to view...

Improvements in productivity shift the aggregate supply curve outward.

Answer the following statement true (T) or false (F)

Economics

Justin never keeps track of the sales and discounts offered in the stores at various times of the year, while his sister does. This implies that Justin has a higher price elasticity of demand than his sister

Indicate whether the statement is true or false

Economics

Injections to the circular flow model include saving, taxes, exports, and investment.

Answer the following statement true (T) or false (F)

Economics

Who was one of the first proponents of employing market economies instead of command economies?

A. Robert Heilbroner. B. Karl Marx. C. Jeffrey Sachs. D. Adam Smith.

Economics