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The Figure Below Shows the Short-Run Aggregate Demand and Supply

Question 84

Multiple Choice

The figure below shows the short-run aggregate demand and supply curves of an economy. In this figure, the distance between Y1 and Y2 represents:
The figure below shows the short-run aggregate demand and supply curves of an economy. In this figure, the distance between Y<sub>1</sub> and Y<sub>2</sub> represents: A) an expansionary gap. B) a recessionary gap. C) a cost-push inflation. D) the natural rate of unemployment. E) the full employment output.


A) an expansionary gap.
B) a recessionary gap.
C) a cost-push inflation.
D) the natural rate of unemployment.
E) the full employment output.

Correct Answer:

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