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Using Figure 9

Question 145

Multiple Choice

Using Figure 9.9,and assuming the full-employment output level is $50 billion, 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.


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.

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