Use the Figure Below to Answer the Following Questions

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.5
-Refer to Figure 26.3.5. At point B the economy has

A) an inflationary gap with real GDP in excess of potential GDP.
B) an inflationary gap with real GDP less than potential GDP.
C) a recessionary gap with real GDP in excess of potential GDP.
D) a recessionary gap with real GDP less than potential GDP.
E) neither an inflationary gap nor a recessionary gap.