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Question 112

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Use the following to answer questions:
Figure: Short-Run Equilibrium Use the following to answer questions: Figure: Short-Run Equilibrium -(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. It reflects a short-run inflationary gap. According to the labeling on the graph, the size of the inflationary gap is equal to: A) P<sub>2</sub> - P<sub>1</sub>. B) Y<sub>1</sub> - Y<sub>P</sub>. C) P<sub>2</sub> - P<sub>0</sub>. D) P<sub>1</sub> - P<sub>0</sub>.
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. It reflects a short-run inflationary gap. According to the labeling on the graph, the size of the inflationary gap is equal to:


A) P2 - P1.
B) Y1 - YP.
C) P2 - P0.
D) P1 - P0.

Correct Answer:

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