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Refer to Figure 11

Question 9

Multiple Choice

Refer to Figure 11.3.Assume aggregate demand is represented by AD<sub>1</sub> and full-employment output is $5.6 trillion.The economy confronts an inflationary GDP gap of A) $200 billion. B) $400 billion. C) $600 billion. D) $800 billion. Refer to Figure 11.3.Assume aggregate demand is represented by AD1 and full-employment output is $5.6 trillion.The economy confronts an inflationary GDP gap of


A) $200 billion.
B) $400 billion.
C) $600 billion.
D) $800 billion.

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