In Macroland,potential GDP Equals $20 Billion and Real GDP Equals

question 107

Multiple Choice

In Macroland,potential GDP equals $20 billion and real GDP equals $21.5 billion.Macroland has a(n) _________ gap equal to ________% of potential GDP.

• A) expansionary;7.5
• B) expansionary;7.0
• C) expansionary;1.5
• D) recessionary;7.5
• E) recessionary;7.0