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[Solved]: 1. The graph below shows the AD-AS diagram fo
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(Solved): 1. The graph below shows the AD-AS diagram for Canada. What type of the GDP gap is observed in ...


1. The graph below shows the AD-AS diagram for Canada.

student submitted image, transcription available below

What type of the GDP gap is observed in Canada (select one)?

  1. There is no recessionary or inflationary gap.
  2. The economy is facing a recessionary gap.
  3. The economy is facing an inflationary gap.


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