-Based on the Keynesian Cross Diagram Above,if Potential Output Y

question 115

Multiple Choice

-Based on the Keynesian cross diagram above,if potential output Y* = 5,000,then at the short-run equilibrium,

• A) there is a recessionary gap.
• B) there is an expansionary gap.
• C) actual output equals potential output.
• D) firms will be producing more than they can sell.
• E) firms will be producing less than they can sell.

---

Definitions:

Anxiety Disorders

A group of mental health conditions characterized by excessive fear, anxiety, and related behavioral disturbances.

Mood Disorders

A category of mental disorders involving persistent disturbances in a person's mood, causing significant impairment in daily life.

Active Listening

The process of attentively listening to someone while providing feedback indicating comprehension and interest, often used to improve personal and professional communications.

Unconditional Positive Regard

A concept in psychology that refers to offering acceptance and support to someone regardless of their actions or feelings, often used in client-centered therapy.