The Figure Below Shows the Determination of the Equilibrium Price

question 24

Multiple Choice

The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. If the economy is at point H, there is a(n) :

• A) expansionary gap of $300 billion.
• B) recessionary gap of $300 billion.
• C) recessionary gap of $10 billion.
• D) expansionary gap of $20 billion.
• E) expansionary gap of $10 billion.

---

Definitions:

Fraud

The wrongful or criminal deception intended to result in financial or personal gain.

Insurer

A company that provides financial protection against specific risks to individuals or entities in exchange for premiums.

Automobile Theft

The act of unlawfully taking a motor vehicle without the consent of its owner.

Liable

Being legally responsible for something, typically involving financial compensation for harm or damages.