Multiple Choice
In the Keynesian cross depicted below,which of the following is NOT true?
A) The economy's potential output equals 1,000.
B) The economy's actual short-run equilibrium output equals 850.
C) The economy is in recession with a recessionary output gap of 150.
D) The economy has an expansionary output gap of 150.
E) The real interest rate facing the public equals 5%.
Correct Answer:

Verified
Correct Answer:
Verified
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