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The Table Gives the Aggregate Demand and Aggregate Supply Schedules

Question 63

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  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 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

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