Refer to the above figure. If the relevant aggregate demand curve is AD2, what is the current economic situation?
A. inflationary gap
B. recessionary gap
C. overemployment
D. equilibrium
Answer: B
You might also like to view...
In the United States, the Lorenz curve for wealth is ________ from the 45-degree line than is the Lorenz curve for income, which means that the distribution of wealth is more ________ than the distribution of income
A) farther away from; unequal B) farther away from; equal C) closer to; unequal D) closer to; equal
The flatter the aggregate supply curve, the less the amount of government spending necessary to close a $1 billion GDP gap
a. True b. False Indicate whether the statement is true or false
Advertising has no effect on the demand schedule for a good
a. True b. False Indicate whether the statement is true or false
Using supply and demand analysis, explain why there is sometimes a surplus of seats to watch a television show being taped and other times there is a shortage of such seats. Assume that tickets to view the taping of a television show are free of charge