Figure 7-4 -Refer to Figure 7-4. Which of the Following Statements Is

Multiple Choice

Figure 7-4
-Refer to Figure 7-4. Which of the following statements is true?

A) The economy depicted in the figure experiences a recessionary gap = Y_p*Y₁.
B) The economy depicted in the figure experiences a recessionary gap = Y_p*Y₂.
C) The economy depicted in the figure experiences a recessionary gap = Y₂*Y₁.
D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.