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-In the Above Figure, If the Relevant Aggregate Demand Curve

Question 300

Multiple Choice

-In the above figure, if the relevant aggregate demand curve is AD₂, what type of gap exists and how large is it? A) inflationary gap of $500 billion B) inflationary gap of $1 trillion C) recessionary gap of $1 trillion D) recessionary gap of $500 billion
-In the above figure, if the relevant aggregate demand curve is AD₂, what type of gap exists and how large is it?


A) inflationary gap of $500 billion
B) inflationary gap of $1 trillion
C) recessionary gap of $1 trillion
D) recessionary gap of $500 billion

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