Economics · Macroeconomics
A nation's employment level rises when aggregate demand increases, but after reaching full employment, inflation accelerates without any further increase in real output. This situation represents:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Classical full employment
- 2Keynesian underemployment equilibrium
- 3Inflationary gap✓
- 4Deflationary gap
Correct answer
Inflationary gap
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