Question: There is an infl ationary gap when . ( LO1 , 2 ) a) equilibrium GDP is equal to full-employment GDP b) equilibrium GDP is

There is an infl ationary gap when

. ( LO1 , 2 )

a) equilibrium GDP is equal to full-employment GDP

b) equilibrium GDP is smaller than full-employment GDP

c) equilibrium GDP is larger than full-employment GDP

d) none of these occur

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