The Figure Below Shows Short-Run Equilibrium in an Aggregate Demand-Aggregate

question 34

Multiple Choice

The figure below shows short-run equilibrium in an aggregate demand-aggregate supply model.In this figure,the distance between points Y1 and Y2 represents:

• A)an expansionary gap.
• B)a recessionary gap.
• C)the potential output.
• D)seasonal unemployment.
• E)structural unemployment.

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Definitions:

Journal Entry

A basic record documenting a business transaction in an accounting system, used to transfer information to financial statements.

Bank Balance

The amount of money held in a bank account at a particular time, as recorded by the bank.

NSF Check

Stands for Non-Sufficient Funds Check, a check that cannot be processed due to insufficient funds in the account it was drawn on.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.