Question: Using the aggregate expenditures model, assume the aggregate expenditures (AE) line is above the 45-degree line at full-employment GDP. This vertical distance is called a(an)

Using the aggregate expenditures model, assume the aggregate expenditures (AE) line is above the 45-degree line at full-employment GDP. This vertical distance is called a(an)

a. inflationary gap.

b. recessionary gap.

c. negative GDP gap.

d. marginal propensity to consume gap.

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