The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is equal to ________.
A) recessionary; $1 trillion
B) inflationary; $1 trillion
C) inflationary; $12 trillion
D) inflationary; $13 trillion
E) recessionary; $12 trillion

Question

The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is equal to ________.
A) recessionary; $1 trillion 
B) inflationary; $1 trillion 
C) inflationary; $12 trillion 
D) inflationary; $13 trillion 
E) recessionary; $12 trillion

Quizplus · Accepted Answer

The Answer of  
The figure above shows an economy's aggregate demand curve, aggregate supply curve, and potential GDP.
-In the figure above, the ________ gap is equal to ________.
A) recessionary; $1 trillion 
B) inflationary; $1 trillion 
C) inflationary; $12 trillion 
D) inflationary; $13 trillion 
E) recessionary; $12 trillion

The Figure Above Shows an Economy's Aggregate Demand Curve, Aggregate