The inflationary gap is

the amount by which aggregate supply exceeds aggregate demand at full employmentCorrect answerYour answerthe amount by which aggregate demand exceeds aggregate supply at full employmentCorrect answerYour answerthe rise in the price level in a yearCorrect answerYour answerthe gap between exports and importsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

It measures the excess demand at the full-employment level of output.

Concept: Inflationary gap
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsExcess demand and the inflationary gap

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The inflationary gap is

Explanation