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Murljashka [212]
3 years ago
13

When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and

the government policy to eliminate this gap will ________ real GDP and ________ the price level.?
Business
1 answer:
guajiro [1.7K]3 years ago
7 0
Base on my research, the gap that is stated in the problem is the inflationary gap. This is the amount of the real GDP go beyond potential full-employment GDP. Upon eliminating this gap the government forms a policy that will allow the potential GDP to be equal to the real GDP and higher the price level. 
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