1. A Server and unanticipated inflation can affect:

A. the level, but not the distribution, of income.

B. The distribution, but not the level, of income

C. Both the level and the distribution of income.

D. neither the level nor the distribution of income.

2. What is the type and amount of the gap that exists in this economy?

A. there is an inflationary gap equal to 100 billion.

B. There is a recessionary gap equal to 100 billion.

C. There is an inflationary gap equal to 20 billion.

D. There is a recessionary gap to 20 billion.