Economics (AS & A Level) · Oct / Nov 2024 · Paper 32 · Question 19
9708The circular flow of income
The diagram shows full employment, national income, and expenditure (AMD). The economy is in equilibrium at J. What does the distance KL represent?
- Aa deflationary gap
- Ba trade deficit
- Can inflationary gap
- Dan employment gap
As printed in the paper
Show the answer
Correct answer: A. a deflationary gap
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.