Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions .
Exhibit: The Aggregate Demand/Aggregate Supply Model 2
-(Exhibit: The Aggregate Demand/Aggregate Supply Model 2) Which of the following statements is true?

• A) The economy depicted in the figure experiences an inflationary gap = Y₂ -Y_p.
• B) The economy depicted in the figure experiences an inflationary gap = Y₁ -Y_p.
• C) The economy depicted in the figure experiences an inflationary gap = Y₁-Y₂.
• D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.

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Definitions:

Kinesthetic

Relating to kinesthesia, the sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Vestibular

Pertaining to the body's vestibular system, responsible for maintaining balance and spatial orientation.

Specific Receptor

A specialized cell or molecule designed to recognize and bind with particular substances, triggering a specific response in the body.

Temperature

A measure of the degree of internal heat of a substance or object, typically expressed in units of Celsius, Fahrenheit, or Kelvin.