Use the table below to answer the following questions.
Table 26.3.1

-Refer to Table 26.3.1. Consider the economy represented in the table. There is
A)an inflationary gap equal to $100 billion.
B)an inflationary gap equal to $50 billion.
C)a recessionary gap equal to $50 billion.
D)a recessionary gap equal to $100 billion.
E)neither an inflationary nor a recessionary gap because the economy is at full employment.

Question

Use the table below to answer the following questions.
Table 26.3.1
 
-Refer to Table 26.3.1. Consider the economy represented in the table. There is
A)an inflationary gap equal to $100 billion. 
B)an inflationary gap equal to $50 billion. 
C)a recessionary gap equal to $50 billion. 
D)a recessionary gap equal to $100 billion. 
E)neither an inflationary nor a recessionary gap because the economy is at full employment.

Quizplus · Accepted Answer

A recessionary gap occurs when the actual GDP is less than the potential GDP, indicating underutilization of resources. The gap is $50 billion.

Use the Table Below to Answer the Following Questions