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Refer to the Above Diagram

Question 10

Multiple Choice

Refer to the above diagram.If the full-employment level of GDP is B and aggregate expenditures are at AE<sub>3</sub>, the: A) inflationary expenditure gap is ed. B) inflationary expenditure gap is BC. C) recessionary expenditure gap is eg. D) economy is in equilibrium, but at less than full employment. Refer to the above diagram.If the full-employment level of GDP is B and aggregate expenditures are at AE3, the:


A) inflationary expenditure gap is ed.
B) inflationary expenditure gap is BC.
C) recessionary expenditure gap is eg.
D) economy is in equilibrium, but at less than full employment.

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