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The Figure Below Shows Equilibrium in an Aggregate Demand-Aggregate Supply

Question 112

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The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of these statements is true if the economy described by this figure is at point M on SRAS100?​ ​
Figure 10.4
The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of these statements is true if the economy described by this figure is at point M on SRAS<sub>100</sub>?​ ​ Figure 10.4 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 recessionary gap. C) The actual price level is higher than expected with a $200 billion recessionary 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.


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 recessionary gap.
C) The actual price level is higher than expected with a $200 billion recessionary 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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