Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 21

In the economy depicted, the $5 billion inflationary expenditure gap:
A) expands real GDP to $530 billion.
B) leaves real GDP at $510 billion but causes inflation.
C) could be remedied by equal $5 billion increases in taxes and government spending.
D) implies that real GDP exceeds nominal GDP.