Use the Following to Answer Questions

question 156

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy 2
-(Exhibit: Fiscal Policy 2) If real GDP is equal to Y_r, there is

• A) an inflationary gap.
• B) a recessionary gap.
• C) equilibrium at full employment.
• D) a short-run and a long-run equilibrium.

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Definitions:

Ana-

a prefix denoting upward, back, again, excessive, or apart.

Bi-

A prefix indicating two, double, or twice, used in various scientific and mathematical contexts.

Chromo-

A prefix relating to color or pigmentation, commonly used in terms related to biology and chemistry.

Ecto-

A prefix meaning outside or external, used in various medical and scientific terms, referring to an outer layer or external part of a structure.