The Figure Below Shows the Equilibrium in an Aggregate Demand-Aggregate

question 3

Multiple Choice

The figure below shows the equilibrium in an aggregate demand-aggregate supply model.In this figure,which of the following is true for an economy that is at point V in the short run?

• A)There is a recessionary gap worth $200 billion.
• B)The potential output is $7 trillion.
• C)The actual price level is 100.
• D)The natural rate of unemployment is more than 6.8 trillion.
• E)The actual output is equal to the potential output.

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Definitions:

Caudate Nucleus

A brain structure known to play significant roles in learning, memory, reward processing, motivation, and movement.

Hippocampus

A region of the brain important for learning and memory, particularly in consolidating short-term memories into long-term memories.

Amygdala

A part of the brain's limbic system involved in emotion processing, particularly fear and pleasure responses.

Fusiform Gyrus

A region of the human brain that plays a role in high-level visual processing, particularly in face and object recognition.