When the economy is at an above full-employment equilibrium, ________.
A. nominal GDP exceeds real GDP
B. an inflationary gap exists
C. a recessionary gap exists
D. real GDP is less than potential GDP
Answer:B
When the economy is at an above full-employment equilibrium, ________.
A. nominal GDP exceeds real GDP B. an inflationary gap exists C. a recessionary gap exists D. real GDP is less than potential GDP