Final answer:
The phrase that does not describe or result from an inflationary gap is a decrease in energy prices causing the AS curve to shift to the right. This scenario points to a positive supply shock, leading to lower price levels and increased real GDP, which is opposite to the effects of an inflationary gap.
Step-by-step explanation:
The question relates to understanding which phrase does not describe or result from an inflationary gap. An inflationary gap occurs when aggregate demand increases beyond the potential output of the economy leading to higher price levels without an increase in real GDP. This is due to the aggregate supply curve being vertical at potential GDP.
Of the provided options:
- Inflationary gap as a result of increased aggregate demand at potential output - describes an inflationary gap.
- A decrease in government spending shifting AD to the left - does not describe an inflationary gap but rather a potential tool to correct it.
- A decrease in energy prices causing the AS curve to shift right - does not describe an inflationary gap, instead it describes a positive supply shock that could potentially alleviate inflationary pressures.
A decrease in energy prices, which leads to an outward shift of the AS curve, a lowering of the price level, and an increase in real GDP, clearly does not describe or result from an inflationary gap, but rather the opposite effect, often associated with a deflationary gap or improved economic conditions.