8. The economy’s current level of equilibrium GDP is $780 billion.

The full employment level of GDP is $800 billion. The multiplier is 4. Given those facts, we know that the economy faces expenditure gap of ___________. LO31.8

a. An inflationary; $5 billion.

b. An inflationary; $10 billion.

c. An inflationary; $20 billion.

d. A recessionary; $5 billion.

e. A recessionary; $10 billion.

f. A recessionary; $20 billion.