-The Table Above Gives Data for the Nation of Pearl,a

Multiple Choice

-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;inflationary gap
B) $22 billion;recessionary gap
C) $28 billion;inflationary gap
D) $28 billion;recessionary gap
E) $25 billion;equilibrium