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If Real GDP at Full Employment Is $5 Billion While

Question 132

Multiple Choice

If real GDP at full employment is $5 billion while current GDP is $6 billion, a(n) _____ exists, and will require a _____ in spending to bring the economy back to full employment.


A) recessionary gap; increase
B) recessionary gap; decrease
C) inflationary gap; increase
D) inflationary gap; decrease

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