The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy

question 5

Multiple Choice

The figure below shows the short-run aggregate supply curve of an economy. In this figure, a recessionary gap would be represented by the distance between:

• A) Y₁and Y₂.
• B) Y₁and Y₃.
• C) Y₂and Y₃.
• D) P₃and P₁.
• E) P₃and P₂.