When real GDP exceeds potential GDP, then the economy has
A. an inflationary gap.
B. a below full-employment equilibrium.
C. a recessionary gap.
D. None of the above answers are correct.
Answer:A
When real GDP exceeds potential GDP, then the economy has
A. an inflationary gap. B. a below full-employment equilibrium. C. a recessionary gap. D. None of the above answers are correct.