Which of the following occurs when the spending on final goods and services exceeds full-employment GDP?
A)Inventory accumulation.
B)Unemployment.
C)Inflationary gap.
D)Recessionary gap.

Question

Quizplus · Accepted Answer

When spending on final goods and services exceeds full-employment GDP, it creates an inflationary gap. This means that the demand for goods and services exceeds the supply, causing prices to rise. This can lead to inflation and other economic problems.

Which of the Following Occurs When the Spending on Final