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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

Question 107

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy. The distance between _______ illustrates an inflationary expenditure gap. A) PAE <sub>2</sub> and PAE <sub>3</sub> B) PAE <sub>1</sub> and PAE <sub>2</sub> C) Y <sub>1</sub> and Y <sub>2</sub> D) Y <sub>2</sub> and Y <sub>3</sub> The distance between _______ illustrates an inflationary expenditure gap.


A) PAE 2 and PAE 3
B) PAE 1 and PAE 2
C) Y 1 and Y 2
D) Y 2 and Y 3

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