​The Figure Given Below Shows Short Run and Long Run

question 90

Multiple Choice

​The figure given below shows short run and long run equilibrium in an aggregate demand-aggregate supply model.The economy shown in this figure is: ​
Figure 15.5
​

• A)in a long-run equilibrium at the price level P and income level Y.
• B)in a short-run equilibrium at the price level P and income level Y.
• C)experiencing a contractionary gap at price level P and income level Y.
• D)experiencing an expansionary gap at price level P" and income level Y'.
• E)in a short-run equilibrium at the price level P' and income level Y.

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Definitions:

Outsourcing

The business practice of hiring external firms or individuals to perform services or create goods that traditionally were performed in-house.

Health Insurance Coverage

Financial protection provided to individuals or groups for medical expenses, covering or reimbursing the costs associated with illness, injury, or preventative care.

Americans

Citizens or nationals of the United States of America, a country located primarily between Canada and Mexico.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, serving as a broad measure of economic activity.