Japan is at _________. A. a below full-employment equilibrium and has a recessionary gap B. an above full-employment equilibrium and has a recessionary gap C. a below full-employment equilibrium and has an inflationary gap D. an above full-employment equilibrium and has an inflationary gap
Japan is at _________. A. a below full-employment equilibrium and has a recessionary gap B. an above full-employment equilibrium and has a recessionary gap C. a below full-employment equilibrium and has an inflationary gap D. an above full-employment equilibrium and has an inflationary gap
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Japan is at _________.
A.
a below full-employment equilibrium and has a recessionary gap
B.
an above full-employment equilibrium and has a recessionary gap
C.
a below full-employment equilibrium and has an inflationary gap
D.
an above full-employment equilibrium and has an inflationary gap

Transcribed Image Text:In Japan, potential GDP is 600 trillion yen, and the table shows the aggregate
demand and aggregate supply schedules.
Real GDP
Real GDP
demanded
supplied
(trillions of 2009 yen)
600
550
500
450
400
Price level
75
85
95
105
115
Describe the macroeconomic equilibrium.
400
450
500
550
650
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