In the above figure, point C represents A) a recessionary gap. ...

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In the above figure, point C represents
 
  A) a recessionary gap.
  B) a full-employment equilibrium.
  C) an inflationary gap.
  D) a decrease in aggregate demand.

Question 2

The chain-weighted output index method of calculating real GDP compares
 
  A) compares the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output.
  B) quantities produced in different years using prices from a year chosen as a reference period.
  C) quantities produced in different years with the prices that prevailed during the year in which the output was produced.
  D) prices at different points in time using a sample of goods that is representative of goods purchased by households.

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Answer to Question 1

C

Answer to Question 2

A

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