-Refer to Exhibit 9-4

question 98

Multiple Choice

-Refer to Exhibit 9-4.When AD and SRAS cross at the point at which the price level is equal to P₁ and Real GDP is equal to Q₃,the economy is in

• A) a recessionary gap.
• B) an inflationary gap.
• C) long-run equilibrium.
• D) a and c
• E) b and c

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Definitions:

Automatically Processed

Information processed without conscious awareness, often quickly and efficiently.

Retracing Steps

A method of attempting to remember or find something by thinking or going back over the path or actions taken.

Identification

A psychological process whereby an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.

Implicit Memory

Memory that enhances task execution using prior experiences, without the individual consciously realizing those past experiences.