The Figure Below Shows the Price Level,real GDP,and the Potential

question 36

Multiple Choice

The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor an active approach to policy,once the expansionary gap is eliminated,the economy can attain equilibrium at:​ ​
Figure 16.2
​

• A)point A.
• B)point B.
• C)point C.
• D)a point above point A on the SRAS curve.
• E)at a point below point C on the SRAS curve.

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Definitions:

Internal Rate Of Return

Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments by calculating the rate of return that sets the net present value of all cash flows to zero.

Economic Ratings

Evaluations or rankings based on financial performance, stability, or investment attractiveness of entities or countries.

Project Champions

Individuals within an organization who advocate for and support a project, ensuring it receives necessary resources and attention.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.