Table 10-1
Aggregate Quantity
Aggregate Quantity
?
Demanded
Supplied
Price
(billions)
(billions)
Level
$3500
$2900
65
3400
3000
75
3350
3150
90
3250
3250
110
3100
3400
130
In Table 10-1, if full employment occurs at $3,400 billion, then

A. the economy experiences a recessionary gap of $75 billion.
B. the economy experiences a recessionary gap of $150 billion.
C. the economy experiences an inflationary gap of $75 billion.
D. the economy experiences an inflationary gap of $150 billion.


Answer: B

Economics

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