When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap.
B) a below-full-employment equilibrium.
C) a recessionary gap.
D) None of the above answers are correct.
A
Economics
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Constrained discretion ________
A) eliminates all discretion in policymaking B) imposes an inherent discipline on consumers C) imposes an inherent discipline on policymakers but does not eliminate all flexibility D) requires policymakers follow a constant growth rate rule for money
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