Multiple Choice
Refer to Table 9.2.(Data are expressed in billions of dollars. ) Table 9.2
If the full-employment level of income (YF) in Table 9.2 is $700 billion,
A) The economy is in equilibrium.
B) There is a recessionary gap of $250 billion.
C) There is an inflationary gap of $450 billion.
D) There is an inflationary gap of $700 billion.
Correct Answer:
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