The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars.
A) inflationary; less than
B) inflationary; exactly
C) inflationary; more than
D) recessionary; more than
E) recessionary; exactly

Question

The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars.
A) inflationary; less than 
B) inflationary; exactly 
C) inflationary; more than 
D) recessionary; more than 
E) recessionary; exactly

Quizplus · Accepted Answer

The Answer of  
The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars.
A) inflationary; less than 
B) inflationary; exactly 
C) inflationary; more than 
D) recessionary; more than 
E) recessionary; exactly

The Figure Above Shows an Economy's Aggregate Demand Curve, Aggregate