In Figure 9.9, at a full-employment output level of $150 billion, the gap by which actual aggregate income or GDP is different from full-employment income or GDP is

A. An inflationary gap of $25 billion income.
B. An inflationary gap of $50 billion income.
C. A recessionary gap of $50 billion income.
D. Expenditure equilibrium.


Answer: C

Economics

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Economics