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Question 49

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Figure: Fiscal Policy Choices Use the following to answer questions : Figure: Fiscal Policy Choices -(Figure: Fiscal Policy Choices) Look at the figure Fiscal Policy Choices. In panel (a) , the economy is initially at output level Y<sub>1</sub> and there is: A) an inflationary gap. B) a recessionary gap. C) equilibrium at full employment. D) no gap.
-(Figure: Fiscal Policy Choices) Look at the figure Fiscal Policy Choices. In panel (a) , the economy is initially at output level Y1 and there is:


A) an inflationary gap.
B) a recessionary gap.
C) equilibrium at full employment.
D) no gap.

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