An inflationary gap is created when
A) real GDP is greater than potential GDP.
B) real GDP equal to potential GDP.
C) the inflation rate is less than potential inflation.
D) the price level exceeds the equilibrium price level.
E) potential GDP is greater than real GDP.
A
You might also like to view...
Which of the following is the correct formula for determining the civilian unemployment rate?
a. [(the number of unemployed, working-age civilian seeking work)/(the number of civilian in the labor force)] x 100. b. C + I + G + (X-M). c. The total number of unemployed, working-age civilians seeking work. d. (The number of civilian in the labor force) x 100.
The largest component of GDP is
a. tax revenue b. government purchases of goods and services c. the nation's capital stock d. private investment spending e. private consumption expenditures
The form of government debt that was created to allow more people to buy and hold government debt is the
a. Treasury bond b. Treasury bill c. Treasury note d. savings bond e. savings bill
A production possibilities frontier is a graph that shows the combination of outputs that an economy should produce
a. True b. False Indicate whether the statement is true or false