On a TE-TP Diagram Consider a Level of Real GDP

question 145

Multiple Choice

On a TE-TP diagram consider a level of Real GDP at which the vertical distance to the TE line exceeds the vertical distance to the 45-degree line.This level of Real GDP is __________ its equilibrium level,with __________.

• A) above; TE > TP
• B) above; TE < TP
• C) below; TE > TP
• D) below; TE < TP

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