The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees. The economy is experiencing ________ gap and firms will ________.
A) an inflationary gap; increase production
B) an inflationary gap; increase money wages paid to workers
C) a recessionary gap; increase production
D) a recessionary gap; decrease money wages paid to workers

Question

The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees.  The economy is experiencing ________ gap and firms will ________.
A) an inflationary gap; increase production 
B) an inflationary gap; increase money wages paid to workers 
C) a recessionary gap; increase production 
D) a recessionary gap; decrease money wages paid to workers

Quizplus · Accepted Answer

The Answer of The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees.  The economy is experiencing ________ gap and firms will ________.
A) an inflationary gap; increase production 
B) an inflationary gap; increase money wages paid to workers 
C) a recessionary gap; increase production 
D) a recessionary gap; decrease money wages paid to workers

The Table Below Shows Data for India's Economy