if the consumer price index begins to increase dramatically, which of the following is likely true? the output gap is positive and near the peak. the output gap is positive and near the trough. there is no output gap and the economy is growing. the output gap is negative and near the peak. the output gap is negative and near the trough.

Actual output that exceeds full capacity results in a positive output gap. This occurs when there is a significant increase in demand, which forces businesses to run well over their most productive levels in order to keep up with the demand.
An output gap that is positive indicates that the economy's capacity prevents it from operating at its current level without generating serious economic harm, making the current level of activity unsustainable over the long term.
In the case of a zero output gap, actual and potential output are both equal. The goal would be to have a healthy economy where potential and actual output both increase equally and the output gap stays at zero.

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