Macro AD-AS Model in Exhibit 14A-4, the Level of Real GDP Represented by GDP

Multiple Choice

  Macro AD-AS Model
In Exhibit 14A-4, the level of real GDP represented by Y _p :

A) would be associated with considerable unemployment.
B) indicates that the economy is experiencing zero inflation.
C) indicates the short-run equilibrium level of real GDP.
D) is potential real GDP for this economy.