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Question 115

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Use the following to answer questions: Use the following to answer questions: -(Figure: Fiscal Policy Choices) Refer to Figure: Fiscal Policy Choices. In panel (b) , if real GDP is equal to Y<sub>1</sub>, there is: A) an inflationary gap. B) a recessionary gap. C) equilibrium at full employment. D) no gap.
-(Figure: Fiscal Policy Choices) Refer to Figure: Fiscal Policy Choices. In panel (b) , if real GDP is equal to Y1, there is:


A) an inflationary gap.
B) a recessionary gap.
C) equilibrium at full employment.
D) no gap.

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