Answer:
D. Is experiencing an inflationary gap.
Explanation:
The potential output is the highest level of gross domestic product that can be sustained in the long term using full employment. If the actual output exceeds the potential output, then the output gap (the difference between the actual and the potential output) is positive, which means that the gross domestic product exceeds the trend. This implies that there will be inflationary pressures if we try to keep the gross domestic product in the new actual output level, since there would need to be an overtime employment of the workforce and all the resources would be fully used, so any expansion above that level would imply pressures on the economy.
