Using Figure 9.9,and assuming the full-employment output level is $50 billion,
A)There is an inflationary gap of $50 billion income.
B)There is a recessionary gap of $50 billion income.
C)There is an inflationary gap of $25 billion income.
D)The economy is at macro equilibrium.

Question

Using Figure 9.9,and assuming the full-employment output level is $50 billion,
A)There is an inflationary gap of $50 billion income. 
B)There is a recessionary gap of $50 billion income. 
C)There is an inflationary gap of $25 billion income. 
D)The economy is at macro equilibrium.

Quizplus · Accepted Answer

The Answer of  Using Figure 9.9,and assuming the full-employment output level is $50 billion,
A)There is an inflationary gap of $50 billion income. 
B)There is a recessionary gap of $50 billion income. 
C)There is an inflationary gap of $25 billion income. 
D)The economy is at macro equilibrium.