Use the following table to answer the questions : Table9.2: -Complete Table 9.2.(Data are expressed in billions of dollars. ) the full-employment level of income (Y_F)in Table 9.2 is $800 billion, A)The economy is in equilibrium. B)There is a recessionary gap of $25 billion. C)There is an inflationary gap of $250 billion. D)There is a recessionary gap of $275 billion.

Question

Quizplus · Accepted Answer

Based on the information provided, the full-employment level of income is $800 billion. However, the equilibrium level of income is not given. We can determine that there is a recessionary gap by comparing the actual level of income (which is not given) to the full-employment level of income. If the actual level of income is less than the full-employment level of income, there is a recessionary gap. In this case, the actual level of income is $775 billion ($800 billion - $25 billion), which is less than the full-employment level of income. Therefore, there is a recessionary gap of $25 billion.

Use the Following Table to Answer the Questions : Table9