The Table Below Shows Data for India's Economy The Economy Is Experiencing ________ Gap and Firms Will ________

Multiple Choice

The table below shows data for India's economy. Real GDP is measured in millions of rupees.Suppose that full employment occurs when real GDP is 27,000 million rupees. $$\begin{array} { | c | c | c | c | } \hline & \text { Price level } & \begin{array} { c } \text { Real GDP } \\\text { supplied in the short } \\\text { run }\end{array} & \text { Real GDP demanded } \\\hline \text { a } & 114 & 23,501 & 35,898 \\\hline \text { b } & 120 & 25,355 & 32,341 \\\hline \text { c } & 125 & 27,670 & 27,670 \\\hline \text { d } & 131 & 30,366 & 18,569 \\\hline \text { e } & 138 & 33,164 & 15,898 \\\hline\end{array}$$
The economy is experiencing ________ gap and firms will ________.

A) an inflationary gap; increase production
B) an inflationary gap; increase money wages paid to workers
C) a recessionary gap; increase production
D) a recessionary gap; decrease money wages paid to workers