The Figure Below Shows the Short-Run Aggregate Demand and Supply

question 139

Multiple Choice

The figure below shows the short-run aggregate demand and supply curves of an economy.When real GDP is at Y2,_____.

• A)potential output is greater than actual output.
• B)there is a recessionary gap.
• C)the price level is likely to fall.
• D)the actual unemployment rate is less than the natural rate of unemployment.
• E)aggregate demand is likely to increase to restore equilibrium.

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