The Table Gives the Aggregate Demand and Aggregate Supply Schedules

question 63

Multiple Choice

The table gives the aggregate demand and aggregate supply schedules for a nation.
-The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is ________, and the nation is now experiencing a(n) ________.

• A) $22 billion; recessionary gap
• B) $28 billion; recessionary gap
• C) $28 billion; inflationary gap
• D) $25 billion; equilibrium
• E) $22 billion; inflationary gap

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Definitions:

Brain Death

A medical condition where all functions of the brain, including the brainstem, have irreversibly ceased, used as a legal definition of death in many jurisdictions.

Paralysis

The loss of the ability to move and sometimes to feel anything in part or most of the body, typically as a result of illness, poison, or injury.

Brain Death

A medical condition where all functions of the brain cease permanently, indicating the end of life.

Medical Professionals

Individuals with specialized training and certification to provide healthcare services, such as doctors, nurses, and pharmacists.