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Exhibit 11-5 -If the Economy Is at Point M in Exhibit 11-5

Question 28

Multiple Choice

Exhibit 11-5 Exhibit 11-5 -If the economy is at point M in Exhibit 11-5, A) the actual price level is lower than expected with a $200 billion expansionary gap B) the actual price level is lower than expected with a $200 billion contractionary gap C) the actual price level is higher than expected with a $200 billion contractionary gap D) the actual price level is higher than expected with a $200 billion expansionary gap E) the economy is in equilibrium in the short run and the long run
-If the economy is at point M in Exhibit 11-5,


A) the actual price level is lower than expected with a $200 billion expansionary gap
B) the actual price level is lower than expected with a $200 billion contractionary gap
C) the actual price level is higher than expected with a $200 billion contractionary gap
D) the actual price level is higher than expected with a $200 billion expansionary gap
E) the economy is in equilibrium in the short run and the long run

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