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Question 233

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Use the following to answer questions: Use the following to answer questions: -(Figure: An Increase in Aggregate Demand) Refer to Figure: An Increase in Aggregate Demand.At the Y<sub>2</sub> level of real GDP: A) an inflationary gap equal to the sum of Y<sub>2</sub> and Y<sub>P</sub><sub> </sub>occurs. B) an inflationary gap equal to the difference between Y<sub>2</sub> and Y<sub>P</sub> occurs. C) the solution at Y<sub>2</sub> is a long-run equilibrium. D) a recessionary gap equal to the difference between Y<sub>2</sub> and Y<sub>P</sub> occurs.
-(Figure: An Increase in Aggregate Demand) Refer to Figure: An Increase in Aggregate Demand.At the Y2 level of real GDP:


A) an inflationary gap equal to the sum of Y2 and YP occurs.
B) an inflationary gap equal to the difference between Y2 and YP occurs.
C) the solution at Y2 is a long-run equilibrium.
D) a recessionary gap equal to the difference between Y2 and YP occurs.

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