Use the Table Below to Answer the Following Questions

question 73

Multiple Choice

Use the table below to answer the following questions.
Table 26.3.1

-Refer to Table 26.3.1. Consider the economy represented in the table. There is

• A)an inflationary gap equal to $100 billion.
• B)an inflationary gap equal to $50 billion.
• C)a recessionary gap equal to $50 billion.
• D)a recessionary gap equal to $100 billion.
• E)neither an inflationary nor a recessionary gap because the economy is at full employment.

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Definitions:

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers are greater than its total exports.

Merchandise Trade Deficits

A situation where a country's imports of goods exceed its exports, leading to more money leaving the country than coming in from merchandise trade.

International Debt

The total amount of debt owed by a country to foreign creditors, which can include governments, private investors, and international banks.

Consumer Spending

The total amount of money spent by households in an economy on goods and services.