Use the Following to Answer Questions

question 115

Multiple Choice

Use the following to answer questions:
-(Figure: Fiscal Policy Choices) Refer to Figure: Fiscal Policy Choices. In panel (b) , if real GDP is equal to Y₁, there is:

• A) an inflationary gap.
• B) a recessionary gap.
• C) equilibrium at full employment.
• D) no gap.

---

Definitions:

Emergency

A serious, unexpected, and often dangerous situation that requires immediate action.

Unforeseen

Referring to events or outcomes that were not predicted or expected, often leading to unexpected challenges or opportunities.

Danger

The possibility of harm, injury, or adverse consequences.

Bystander Effect

People are less likely to help in an emergency when they are with others than when alone. The greater the number, the less likely it is that anyone will help.