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Figure 11-4

Question 46

Multiple Choice

Figure 11-4 Figure 11-4 -Refer to Figure 11-4. Suppose the economy is initially at Y<sub>1</sub> in Panel (a) . It is experiencing A) an inflationary gap. B) a recessionary gap. C) an actual unemployment rate that is less than the natural unemployment rate. D) a situation that warrants a decrease in the money supply.
-Refer to Figure 11-4. Suppose the economy is initially at Y1 in Panel (a) . It is experiencing


A) an inflationary gap.
B) a recessionary gap.
C) an actual unemployment rate that is less than the natural unemployment rate.
D) a situation that warrants a decrease in the money supply.

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