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

question 105

Multiple Choice

-Based on the Keynesian cross diagram above,if potential output Y* = 6,000,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.

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Definitions:

Freshwater

Water that has a low salt concentration, commonly found in rivers, lakes, streams, and ponds.

Oxygen

A chemical element with symbol O, critical for the survival of most terrestrial life forms, acting as the final electron acceptor in cellular respiration.

Daily Temperature Extremes

The highest and lowest temperatures that occur within a single day, indicating the range of thermal variability in an area.

Biome

A vast naturally existing assembly of plants and animals that inhabit a significant ecosystem, such as a forest or tundra.