Answered

IDNLearn.com offers a unique blend of expert answers and community-driven knowledge. Join our interactive Q&A platform to receive prompt and accurate responses from experienced professionals in various fields.

When actual economic output rises above economic potential, it is known as:

Select one:
a. A stimulus
b. An inflationary gap
c. A recessionary gap
d. A surplus

Sagot :

GinnyAnsweridn

Final answer:

An inflationary gap results from economic output exceeding potential, policymakers can use expansionary policy to address this.


Explanation:

An inflationary gap occurs when actual economic output rises above economic potential. This signifies a situation where the aggregate demand and short-run aggregate supply curves intersect above potential output, leading to an excess in real GDP compared to the potential level. Policymakers can address this gap using expansionary policy to increase real GDP and bring the economy back to equilibrium.


Learn more about Inflationary Gap here:

https://brainly.com/question/43882946


Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.