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In Figure 9

Question 122

Multiple Choice

In Figure 9.6,if full employment occurs at Q<sub>A</sub>,then aggregate demand is A) Just right,causing no cyclical unemployment. B) Too great,causing an inflationary gap. C) Too small,causing an inflationary gap. D) Too great,causing a recessionary gap. In Figure 9.6,if full employment occurs at QA,then aggregate demand is


A) Just right,causing no cyclical unemployment.
B) Too great,causing an inflationary gap.
C) Too small,causing an inflationary gap.
D) Too great,causing a recessionary gap.

Correct Answer:

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