In the above figure, the inflationary gap when AD 2 is the aggregate demand curve equals
A. the difference between 110 and 100.
B. the difference between $12.5 trillion and $12.0 trillion.
C. LAS minus SAS at a price level of 100.
D. AD 1 .
Answer:B
In the above figure, the inflationary gap when AD 2 is the aggregate demand curve equals
A. the difference between 110 and 100. B. the difference between $12.5 trillion and $12.0 trillion. C. LAS minus SAS at a price level of 100. D. AD 1 .