When there is excess aggregate demand in the economy:
A. Unemployment is higher than at full employment.
B. The GDP gap is negative.
C. Aggregate supply must be shifted leftward.
D. All of the above.
Answer:B
When there is excess aggregate demand in the economy:
A. Unemployment is higher than at full employment. B. The GDP gap is negative. C. Aggregate supply must be shifted leftward. D. All of the above.