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-Refer to the Above Diagram, in Which Qf Is the Full-Employment

Question 16

Multiple Choice

   -Refer to the above diagram, in which Q<sub>f</sub> is the full-employment output. If the economy's current aggregate demand curve is AD<sub>0</sub>, it is experiencing: A)  a positive GDP gap. B)  a negative GDP gap. C)  inflation. D)  an adverse supply shock.
-Refer to the above diagram, in which Qf is the full-employment output. If the economy's current aggregate demand curve is AD0, it is experiencing:


A) a positive GDP gap.
B) a negative GDP gap.
C) inflation.
D) an adverse supply shock.

Correct Answer:

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