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Refer to the Figure Below

Question 120

Multiple Choice

Refer to the figure below. Refer to the figure below. Based on the Keynesian cross diagram, at short-run equilibrium output, A) there is a recessionary gap. B) there is an expansionary gap. C) output equals potential output. D) firms will be producing more than they can sell. Based on the Keynesian cross diagram, at short-run equilibrium output,


A) there is a recessionary gap.
B) there is an expansionary gap.
C) output equals potential output.
D) firms will be producing more than they can sell.

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