-In the Above Figure, If the Relevant Aggregate Demand Curve

question 300

Multiple Choice

-In the above figure, if the relevant aggregate demand curve is AD₂, what type of gap exists and how large is it?

• A)inflationary gap of $500 billion
• B)inflationary gap of $1 trillion
• C)recessionary gap of $1 trillion
• D)recessionary gap of $500 billion

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Definitions:

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An equilibrium state to which a system naturally tends to return after being disturbed.

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The actual weight of an individual at the present time.

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A procedure or practice aimed at tightening the vaginal muscles and tissue, often for sexual reasons, health, or after childbirth.

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A physiological and psychological state of being awoken or of sense organs stimulated to a point of perception, involving activation of the nervous system.