12-19-2004, 03:46 PM
yaar i have studied the pbp well i know what the gaps represent.
my question was what u answered in the end
are the gaps "measured"along price axis or along national income axis?
becoze sometime they say
"gap shows how much agregate demand needs to be raised/decreased to rreaach the equilibrium level"
and sometime this
"the gap shows how much less or more national income is, at the present level compared to the equilibrium level"
i think u got the question right and what u wrote i suspect that also
but in some other books they show the gap on the income axis
waiting for someone who has passed eco paper to tell both of us.
btw..ice blue are u studying only from study text or other bookds also?
my question was what u answered in the end
are the gaps "measured"along price axis or along national income axis?
becoze sometime they say
"gap shows how much agregate demand needs to be raised/decreased to rreaach the equilibrium level"
and sometime this
"the gap shows how much less or more national income is, at the present level compared to the equilibrium level"
i think u got the question right and what u wrote i suspect that also
but in some other books they show the gap on the income axis
waiting for someone who has passed eco paper to tell both of us.
btw..ice blue are u studying only from study text or other bookds also?
