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The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy.If

Question 44

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The figure below shows the short-run aggregate supply curve of an economy.If P3 is the price level prevailing in the economy,_____.​ ​
Figure 10.1
The figure below shows the short-run aggregate supply curve of an economy.If P<sub>3</sub> is the price level prevailing in the economy,_____.​ ​ Figure 10.1   A) there is an expansionary gap. B) there is a recessionary gap. C) the price level will rise. D) the actual unemployment rate is above the natural rate. E) potential output is greater than actual output.


A) there is an expansionary gap.
B) there is a recessionary gap.
C) the price level will rise.
D) the actual unemployment rate is above the natural rate.
E) potential output is greater than actual output.

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