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10 June, 02:26

77. An inflationary expenditure gap is the amount by which: A. equilibrium GDP falls short of the full-employment GDP. B. aggregate expenditures exceed any given level of GDP. C. saving exceeds investment at the full-employment GDP. D. aggregate expenditures exceed the full-employment level of GDP.

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  1. 10 June, 03:40
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    The correct answer is option D.

    Explanation:

    An inflationary gap refers to the situation where the aggregate expenditure is higher than the full employment level of GDP. The economy will be producing at more than full employment level.

    The real GDP will be higher than the potential GDP. The demand for goods and services will be higher than production. It is also known as the expansionary gap.
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Home » Business » 77. An inflationary expenditure gap is the amount by which: A. equilibrium GDP falls short of the full-employment GDP. B. aggregate expenditures exceed any given level of GDP. C. saving exceeds investment at the full-employment GDP. D.
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