Suppose the aggregate demand and short-run aggregate supply schedules for an economy whose potential output equals $2,700 are given by the table: Aggregate Quantity of Goods and Services Price Level Demanded Supplied 0.50 $3,500 $1,000 0.75 3,000 2,000 1.00 2,500 2,500 1.25 2,000 2,700 1.50 1,500 2,800   What is the size of the recessionary gap?

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QUESTION 17

  1. Suppose the aggregate demand and short-run aggregate supply schedules for an economy whose potential output equals $2,700 are given by the table:


    Aggregate Quantity of Goods and Services
    Price Level Demanded Supplied
    0.50 $3,500 $1,000
    0.75 3,000 2,000
    1.00 2,500 2,500
    1.25 2,000 2,700
    1.50 1,500 2,800

     

    What is the size of the recessionary gap?

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