Recessionary gap
GNP gap
Inflationary gap
Deflationary gap
Correct answer is C
Point X represents inflationary gap as seen in the diagram above.
Inflationary gap happens as a result of excess demand.
The deflationary gap is defined by
X
K
X + K
X - K
Correct answer is B
A deflationary gap shows the amount by which aggregate demand must be increased so that equilibrium level of income is increased to the full employment level. It is represented by point K.
When 20 units of output is produced, TC will be
N360
N300
N460
N400
Correct answer is B
No explanation has been provided for this answer.
The average total cost when 20 units are produced is
N20.00
N23.00
N13.00
N15.00
Correct answer is D
No explanation has been provided for this answer.
From the Diagram above, the optimal point of production is
R
T
U
S
Correct answer is D
The optimal point of production is at point S where MU and MR intersects. That is a point where revenue equals cost.
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