Inflation is a rise in the price level. If it is caused primarily by a decrease in aggregate supply, then we refer to it as

Why is it important to distinguish nominal GDP from real GDP?

At a short-run equilibrium ________, while at a long-run equilibrium ________.

A. the inflation rate is stable; there is an output gap B. output equals potential output; the inflation rate is stable C. there is an output gap; output equals potential output D. output is at a level consistent with inflation; there is an output gap