Multiple Choice
Use the figure below to answer the following questions.
Figure 10.3.5
-Refer to Figure 10.3.5.At point B the economy has
A) a recessionary gap with real GDP in excess of potential GDP.
B) a recessionary gap with real GDP less than potential GDP.
C) an inflationary gap with real GDP less than potential GDP.
D) an inflationary gap with real GDP in excess of potential GDP.
E) neither an inflationary gap nor a recessionary gap.
Correct Answer:

Verified
Correct Answer:
Verified
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