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Question 4

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Use the following to answer questions .
Exhibit: The Aggregate Demand/Aggregate Supply Model 2 Use the following to answer questions . Exhibit: The Aggregate Demand/Aggregate Supply Model 2 -(Exhibit: The Aggregate Demand/Aggregate Supply Model 2) Which of the following statements is true? A) The economy depicted in the figure experiences an inflationary gap = Y<sub>2 </sub>-Y<sub>p</sub>. B) The economy depicted in the figure experiences an inflationary gap = Y<sub>1 </sub>-Y<sub>p</sub>. C) The economy depicted in the figure experiences an inflationary gap = Y<sub>1</sub>-Y<sub>2</sub>. D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.
-(Exhibit: The Aggregate Demand/Aggregate Supply Model 2) Which of the following statements is true?


A) The economy depicted in the figure experiences an inflationary gap = Y2 -Yp.
B) The economy depicted in the figure experiences an inflationary gap = Y1 -Yp.
C) The economy depicted in the figure experiences an inflationary gap = Y1-Y2.
D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.

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