Suppose the table below shows the schedules for aggregate demand and short-run aggregate supply in the economy of Tipitina. Further assume that potential output in Tipitina is $200 billion. Use this information to solve the next four questions.
Suppose the table below shows the schedules for aggregate
|
|
Aggregate Quantity of Goods and Services… |
|
|
Price Level |
Demanded (in billions of $) |
Supplied (in billions of $) |
|
50 |
$350 |
$250 |
|
75 |
300 |
300 |
|
100 |
250 |
330 |
|
125 |
200 |
350 |
|
150 |
150 |
360 |
What type of output gap is Tipitina currently facing? Indicate your answer below by writing either “inflationary”, “recessionary”, or “no gap” EXACTLY. How large is the gap? Enter your answer as a whole number. Do not put any symbols or words in your answer.
Type of gap =
Size of gap = $ billion
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