The Figure Below Shows the Determination of the Equilibrium Price

question 115

Multiple Choice

The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model.If the economy is at point H,there is a(n) :

• A)expansionary gap of $300 billion.
• B)recessionary gap of $300 billion.
• C)recessionary gap of $10 billion.
• D)expansionary gap of $20 billion.
• E)expansionary gap of $10 billion.

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Definitions:

Abduction

The action of moving a limb or different body part away from the body's center line or apart from another section.

Flexion

A bending movement around a joint in a limb (e.g., elbow or knee) that decreases the angle between the bones of the limb.

Saddle Joint

A type of synovial joint that allows movements in two planes, resembling a saddle on a horse.

Carpometacarpal

Joints located at the base of the carpal bones of the wrist and the metacarpal bones of the hand, allowing for the movement between the wrist and the base of the fingers.