An inflationary gap occurs when

A) aggregate demand falls, but other things remain constant.
B) short-run aggregate supply falls, but other things remain constant.
C) the short-run equilibrium level of real GDP is greater than long-run aggregate supply.
D) the short-run equilibrium level of real GDP is less than long-run aggregate supply.


C

Economics

You might also like to view...

An across-the-board income tax cut where all income taxes were cut by a constant percentage would

A. necessarily go to higher-income people and alter the after-tax distribution of income in favor of high-income people. B. necessarily go to higher-income people. C. alter the after-tax distribution of income in favor of high-income people. D. by definition, keep the after-tax distribution of income relationships constant.

Economics

What effect, if any, will a good college education have on your human capital? Explain your answer

What will be an ideal response?

Economics

A tax on sellers

What will be an ideal response?

Economics

A nondiscriminating pure monopolist's demand curve:

A. lies above its marginal revenue curve. B. coincides with its marginal revenue curve. C. lies below its marginal revenue curve. D. is perfectly inelastic.

Economics