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Solved: Refer to the graph for Questions 4 and 5. The economy depicted in the graph is
Chapter 0, Problem 5(choose chapter or problem)
QUESTION:
Refer to the graph for Questions 4 and 5. The economy depicted in the graph is experiencing a(n)a. contractionary gap.b. recessionary gap.c. inflationary gap.d. demand gap.e. supply gap.
Questions & Answers
QUESTION:
Refer to the graph for Questions 4 and 5. The economy depicted in the graph is experiencing a(n)a. contractionary gap.b. recessionary gap.c. inflationary gap.d. demand gap.e. supply gap.
ANSWER:Step 1 of 4
Generally, the gap which an economy experiences can be either the recessionary gap or inflationary gap. The potential output when fall below the actual production then the gap present is called inflationary gap. The opposite will hold for the recessionary gap.