Question

"If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP more than potential​ GDP, there is"

Answer 1

Answer: Inflationary Gap

Step-by-step explanation:

Inflationary gap, which is also known as as expansionary gap, is a macroeconomic concept that gives the amount in which the actual gross domestic product exceeds anticipated GDP or aggregate supply at a level, which is expected to be potential full-employment GDP. In other word inflationary gap is the difference between economy's full employment real GDP and the actual gross domestic product