Complete Table 9 $\text { Table } 9.2$ If the Full-Employment Level of Income (Y_F)in Table 9

Multiple Choice

Complete Table 9.2.(Data are expressed in billions of dollars.) $\begin{array}{cccc}\text { Full Employment } & \text { Consumers } & \text { Investors Desire } & \text { Total Private } \\\text { Income (Output) } & \text { Desire to Spend } & \text { to Spend } & \text { Spending }&\text { Total Saving }\\\hline\$ 500 & \$ 300 & \$ 250&\$\_\_\_&\$\_\_\_ \\600 & 375 & 250&\$\_\_\_&\$\_\_\_ \\700 & 450 & 250&\$\_\_\_&\$\_\_\_ \\800 & 525 & 250&\$\_\_\_&\$\_\_\_\end{array}$

$\text { Table } 9.2$ If the full-employment level of income (Y_F) in Table 9.2 is $700 billion,

A) The economy is in equilibrium.
B) There is a recessionary gap of $250 billion.
C) There is an inflationary gap of $450 billion.
D) There is an inflationary gap of $700 billion.