5. Country X's long run full employment level of Real GDP is estimated to be $19,100,000. However, the current actual Real GDP in country X stands at $16,300,000.

Data also shows that in country X an average $1,000.00 increase in income results in $910.00 change in consumption. Answer the following questions. (12 points)

I. Is Country X in a recessionary or an inflationary Real GDP gap? Briefly explain your answer.