Multiple Choice
The figure below shows the equilibrium in an aggregate demand-aggregate supply model. In this figure, which of the following is true for an economy that is at point V in the short run?
A) There is a recessionary gap worth $200 billion.
B) The potential output is $7 trillion.
C) The actual price level is 100.
D) The natural rate of unemployment is more than 6.8 trillion.
E) The actual output is equal to the potential output.
Correct Answer:
Verified
Correct Answer:
Verified
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