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Refer to the Accompanying Figure

Question 125

Multiple Choice

Refer to the accompanying figure. Refer to the accompanying figure. Based on the Keynesian cross diagram, at short-run equilibrium output, A) there is a recessionary gap. B) there is an expansionary gap. C) output equals potential output. D) firms will be producing more than they can sell. Based on the Keynesian cross diagram, at short-run equilibrium output,


A) there is a recessionary gap.
B) there is an expansionary gap.
C) output equals potential output.
D) firms will be producing more than they can sell.

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