Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. Y_p in panel (b) :

A) is potential output.
B) indicates a decrease in aggregate demand.
C) indicates a recessionary gap.
D) is associated with considerable unemployment.