Use the following figure to answer the questions : Figure9.7

-If the full-employment level of income in Figure 9.7 is $300 billion,there is
A)A recessionary gap of $50 billion per year.
B)A recessionary gap of $100 billion per year.
C)An inflationary gap of $500 billion per year.
D)Achievement of macro equilibrium.

Question

Use the following figure to  answer the questions : Figure9.7

-If the full-employment level of income in Figure 9.7 is $300 billion,there is
A)A recessionary gap of $50 billion per year. 
B)A recessionary gap of $100 billion per year. 
C)An inflationary gap of $500 billion per year. 
D)Achievement of macro equilibrium.

Quizplus · Accepted Answer

A recessionary gap occurs when the actual level of income is below the full-employment level. If the full-employment level is $300 billion and the actual income is $200 billion, the gap is $100 billion.

Use the Following Figure to Answer the Questions