Figure 7-4 -Refer to Figure 7-4. Which of the Following Statements Is

question 141

Multiple Choice

Figure 7-4
-Refer to Figure 7-4. Which of the following statements is true?

• A) The economy depicted in the figure experiences a recessionary gap = Y_p*Y₁.
• B) The economy depicted in the figure experiences a recessionary gap = Y_p*Y₂.
• C) The economy depicted in the figure experiences a recessionary gap = Y₂*Y₁.
• D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.

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