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The Table Below Shows Data for India's Economy If Potential GDP in India Is ________ Million Rupees,India Is

Question 350

Multiple Choice

The table below shows data for India's economy. Real GDP is measured in millions of rupees.  Price level  Real GDP  supplied in the short  run  Real GDP demanded  a 11423,50135,898 b 12025,35532,341 c 12527,67027,670 d 13130,36618,569 e 13833,16415,898\begin{array} { | c | c | c | c | } \hline & \text { Price level } & \begin{array} { c } \text { Real GDP } \\\text { supplied in the short } \\\text { run }\end{array} & \text { Real GDP demanded } \\\hline \text { a } & 114 & 23,501 & 35,898 \\\hline \text { b } & 120 & 25,355 & 32,341 \\\hline \text { c } & 125 & 27,670 & 27,670 \\\hline \text { d } & 131 & 30,366 & 18,569 \\\hline \text { e } & 138 & 33,164 & 15,898 \\\hline\end{array}
If potential GDP in India is ________ million rupees,India is experiencing ________.


A) 26,500; an inflationary gap
B) 28,500; an above full-employment gap
C) 26,500; a recessionary gap
D) 30,000; a potential GDP gap

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