Suppose GDP exceeds the level of potential output. We would expect to see: 

A. high unemployment, falling wages, and falling prices. 

B. low unemployment, rising wages, and rising prices. 

C. high unemployment, rising wages, and rising prices. 

D. low unemployment, rising wages, and falling prices.

Answer rating: 100% (QA)

Solution If the real GDP is greater than the potential GDP output gap pos... View the full answer