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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

Question 119

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy. The distance between what 2 lines illustrate a recessionary output gap? A) PAE <sub>2</sub> to PAE <sub>3</sub> B) PAE <sub>1</sub> to PAE <sub>2</sub> C) Y <sub>1</sub> to Y <sub>2</sub> D) Y <sub>2</sub> to Y <sub>3</sub> The distance between what 2 lines illustrate a recessionary output gap?


A) PAE 2 to PAE 3
B) PAE 1 to PAE 2
C) Y 1 to Y 2
D) Y 2 to Y 3

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