In the above figure, if the relevant aggregate demand curve is ...

[HCHenry]

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

[carlsona147]

Answer to Question 1

B

Answer to Question 2

TRUE