Exhibit 10.4 -Refer to Exhibit 10.4, Which Shows an Aggregate Demand-Aggregate Supply

question 47

Multiple Choice

Exhibit 10.4

-Refer to Exhibit 10.4, which shows an aggregate demand-aggregate supply model. In this exhibit, which of the following is true for an economy that is at point V in the short run?

• A) There is a recessionary gap worth $200 billion.
• B) The potential output is $7 trillion.
• C) The actual price level is 100.
• D) The natural rate of unemployment is more than 6.8 trillion.
• E) The actual output is equal to the potential output.

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