An inflationary gap is the amount by which
A. the short-run equilibrium level of nominal GDP is above the short-run level of real GDP.
B. total planned production exceeds total planned real expenditures in the long run.
C. the short-run equilibrium level of nominal GDP is below the short-run level of real GDP.
D. the short-run equilibrium level of real GDP is above the full-employment level of real GDP.
Answer: D
Economics
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