If the SRAS Curve Intersects the AD Curve to the Right

question 60

Multiple Choice

If the SRAS curve intersects the AD curve to the right of Natural Real GDP,the economy is

• A) in a recessionary gap.
• B) in either a recessionary gap or an inflationary gap,but we need more information to determine which one.
• C) in an inflationary gap.
• D) at full-employment Real GDP.

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