Statement I: If Equilibrium GDP Is $6 Trillion and Full

question 303

Multiple Choice

Statement I: If equilibrium GDP is $6 trillion and full employment GDP is $6.5 trillion,we have a recessionary gap of $500 billion.
Statement II: In 1991 and 1992 we had recessionary gaps.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Replacement

The process of substituting one thing for another, or the act of being substituted.

Necrosis

Necrosis is the death of cells or tissues in a living organism due to factors such as injury, infection, or toxins, leading to cell degradation.

Areolar Tissue

A loose connective tissue that provides a supportive and flexible matrix for many organs and structures in the body.

Adipose Tissue

Adipose tissue is a type of connective tissue that stores fat, providing insulation, protection, and energy reserves to the body.