Assume an Economy Is Currently in Equilibrium with Real GDP

question 103

Multiple Choice

Assume an economy is currently in equilibrium with Real GDP at $716 billion.If potential Real GDP (LAS) is $627 billion,which of the following is true?

• A)There is an inflationary gap of $89 billion.
• B)There is an inflationary gap of 89 percent.
• C)There is a recessionary gap of 89 percent.
• D)There is a recessionary gap of $89 billion.

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Definitions:

Sexual Desire

Sexual Desire is the psychological or emotional interest in engaging in sexual activities or fantasies.

Sexual Response Cycle

The sequence of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities, including intercourse and masturbation.

Erection

The physiological process of the penis or clitoris becoming engorged with blood, making it firm and enlarged.

Orgasm

The climax of sexual stimulation, characterized by intensely pleasurable feelings accompanied by a series of involuntary muscle contractions in the genital region.