If the full-employment level of income in Figure 9.7 is $300 billion, there is 

A. Achievement of macro equilibrium.
B. An inflationary gap of $500 billion per year.
C. A recessionary gap of $50 billion per year.
D. A recessionary gap of $100 billion per year.


Answer: D

Economics

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For a commercial bank, the term "reserves" refers to

What will be an ideal response?

Economics