-In the above figure, the inflationary gap when AD₂is the aggregate demand curve equals A) the difference between $12.5 trillion and $12.0 trillion. B) LAS minus SAS at a price level of 100. C) AD₁. D) the difference between 110 and 100.

Question

Quizplus · Accepted Answer

The inflationary gap is the difference between the actual output and the potential output at full employment. In this context, it is the difference between $12.5 trillion (actual output) and $12.0 trillion (potential output).

-In the Above Figure, the Inflationary Gap When AD2 is

-In the Above Figure, the Inflationary Gap When AD₂is