An inflationary output gap exists when the current level of output is _______ full employment GDP.
A) below
B) above
C) equal to
D) decreasing rapidly relative to

Name: An inflationary output gap exists when the current level of output is _______ full employment GDP. A) below B) above C) equal to D) decreasing rapidly relative to
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Question

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An inflationary output gap occurs when the current level of output exceeds the full employment GDP, leading to upward pressure on prices and wages.

An Inflationary Output Gap Exists When the Current Level of Output