The table below shows data for India's economy. Real GDP is ...

[HCHenry]

The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees.
 
  Price level Real GDP
  supplied in the short run Real GDP demanded
  a 114 23,501 35,898
  b 120 25,355 32,341
  c 125 27,670 27,670
  d 131 30,366 18,569
  e 138 33,164 15,898
 
  The economy is experiencing ________ gap and firms will ________.
  A) an inflationary gap; increase production
  B) an inflationary gap; increase money wages paid to workers
  C) a recessionary gap; increase production
  D) a recessionary gap; decrease money wages paid to workers

Question 2

From left to right, the horizontal axis of the Lorenz curve ranks households from
 
  A) smallest to largest.
  B) largest to smallest.
  C) poorest to richest.
  D) richest to poorest.

[Christopher]

Answer to Question 1

B

Answer to Question 2

C

[HCHenry]

Thank you

[Christopher]

Happy to help you