Figure 12.1: -Assuming aggregate demand is represented by AD₃,the economy depicted in Figure 12.1 confronts a real GDP gap of: A) Zero. B) $400 billion. C) $520 billion. D) $560 billion.

Name: Figure 12.1: -Assuming aggregate demand is represented by AD 3 ,the economy depicted in Figure 12.1 confronts a real GDP gap of: A) Zero. B) $400 billion. C) $520 billion. D) $560 billion.
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Question

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If aggregate demand is represented by AD3, the economy is at full employment, meaning there is no real GDP gap.

Figure 12.1: -Assuming Aggregate Demand Is Represented by AD3,the Economy Depicted in Economy

Figure 12.1: -Assuming Aggregate Demand Is Represented by AD₃,the Economy Depicted in Economy