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(Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices

Question 156

Multiple Choice

(Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. In panel (a) , if the economy is at output level Y1, there is:
(Figure: Fiscal Policy Choices)  Use Figure: Fiscal Policy Choices. In panel (a) , if the economy is at output level Y1, there is:   A) an inflationary gap. B) an inflationary gap C) a recessionary gap. D) a recessionary gap E) equilibrium at full employment. F) equilibrium at full employment G) no output gap. H) no output gap


A) an inflationary gap.
B) an inflationary gap
C) a recessionary gap.
D) a recessionary gap
E) equilibrium at full employment.
F) equilibrium at full employment
G) no output gap.
H) no output gap

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