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Author Question: In the above figure, if the relevant aggregate demand curve is AD2, what type of gap exists and how ... (Read 43 times)

HCHenry

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on: Jun 30, 2018
In the above figure, if the relevant aggregate demand curve is AD2, what type of gap exists and how large is it?
 
  A) inflationary gap of 1 trillion B) recessionary gap of 500 billion
  C) inflationary gap of 500 billion D) recessionary gap of 1 trillion

Question 2

If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing banana splits.
 
  Indicate whether the statement is true or false
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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carlsona147

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

TRUE


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