FIGURE 22-5 Refer to Figure 22-5

question 12

Multiple Choice

FIGURE 22-5 Refer to Figure 22-5.Diagram 2 illustrates an economy that is experiencing a(n) ________ gap.The goal of stabilization policy would be to ________ national income until it is equal to ________.

• A)recessionary; increase; actual national income
• B)inflationary; reduce; potential GDP
• C)inflationary; reduce; actual national income
• D)inflationary; increase; potential GDP
• E)recessionary; increase; potential GDP

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