FIGURE 22-5 Refer to Figure 22-5.Diagram 2 illustrates an economy that is experiencing a(n)________ gap.The goal of stabilization policy would be to ________ national income until it is equal to ________.
A)recessionary; increase; actual national income
B)inflationary; reduce; potential GDP
C)inflationary; reduce; actual national income
D)inflationary; increase; potential GDP
E)recessionary; increase; potential GDP

Question

FIGURE 22-5 Refer to Figure 22-5.Diagram 2 illustrates an economy that is experiencing a(n)________ gap.The goal of stabilization policy would be to ________ national income until it is equal to ________.
A)recessionary; increase; actual national income 
B)inflationary; reduce; potential GDP 
C)inflationary; reduce; actual national income 
D)inflationary; increase; potential GDP 
E)recessionary; increase; potential GDP

Quizplus · Accepted Answer

The Answer of  FIGURE 22-5 Refer to Figure 22-5.Diagram 2 illustrates an economy that is experiencing a(n)________ gap.The goal of stabilization policy would be to ________ national income until it is equal to ________.
A)recessionary; increase; actual national income 
B)inflationary; reduce; potential GDP 
C)inflationary; reduce; actual national income 
D)inflationary; increase; potential GDP 
E)recessionary; increase; potential GDP