The Economy Pictured in the Given Figure Has A(n)________ Gap

question 118

Multiple Choice

The economy pictured in the given figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.

• A)recessionary; A
• B)recessionary; B
• C)recessionary; C
• D)expansionary; A

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Definitions:

Total Revenues

The total income generated from the sale of goods or services before any costs are subtracted.

Total Revenue

Total Revenue is the entire amount of money earned by a firm from the sale of its goods or services before any costs or expenses are deducted.

Purely Competitive Firm

A business that operates in a market where there are many sellers and buyers, the product is homogeneous, and there is free entry and exit from the market.

Units of Output

The quantity of goods or services produced by a company, industry, or economy within a specific period.