When full employment GDP = equilibrium GDP there

A) probably is an inflationary gap.
B) may be an inflationary gap.
C) probably is a recessionary gap.
D) may be a recessionary gap.
E) is no inflationary gap or deflationary gap.

Full Employment GDP

The output level of goods and services in an economy when all available labor resources are being used in the most economically efficient way.

Equilibrium GDP

The gross domestic product level where aggregate supply equals aggregate demand, indicating a stable economy.

Inflationary Gap

A situation where aggregate demand in an economy exceeds aggregate supply, leading to inflation and a higher levels of spending than what is supported by production.