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


E

Economics

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