Multiple Choice
The table gives the aggregate demand and aggregate supply schedules for a nation.
-The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is ________, and the nation is now experiencing a(n) ________.
A) $22 billion; recessionary gap
B) $28 billion; recessionary gap
C) $28 billion; inflationary gap
D) $25 billion; equilibrium
E) $22 billion; inflationary gap
Correct Answer:

Verified
Correct Answer:
Verified
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