During an inflationary gap,
A) the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP that exceeds potential GDP.
B) the aggregate demand curve and the aggregate supply curve intersect at potential GDP.
C) the aggregate demand curve and the aggregate supply curve do not intersect.
D) real GDP is less than potential GDP.
E) the price level will fall to restore the long-run equilibrium.
A
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International trade constantly increased throughout the twentieth century
a. True b. False Indicate whether the statement is true or false
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