Which statement is true?

A) On occasion we have inflationary gaps and recessionary gaps at the same time.
B) When we are at equilibrium GDP,we are generally at full employment.
C) Fiscal policy and the automatic stabilizers are identical terms.
D) None of the statements are true.

Inflationary Gaps

A situation in macroeconomics where the demand for goods and services exceeds production due to excessive spending, leading to inflation.

Recessionary Gaps

Situations where the real GDP is lower than the potential GDP due to insufficient aggregate demand, leading to unemployment and underused resources.

Equilibrium GDP

The point at which the aggregate supply and aggregate demand within an economy are equal, indicating a state of economic balance.