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Question 370

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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. If the economy is at equilibrium at Y<sub>1</sub> and P<sub>1</sub>, it is in a(n) : A) recessionary gap. B) inflationary gap. C) high level of unemployment. D) liquidity trap.
-(Figure: Short-Run Equilibrium) Look at the figure Short-Run Equilibrium. If the economy is at equilibrium at Y1 and P1, it is in a(n) :


A) recessionary gap.
B) inflationary gap.
C) high level of unemployment.
D) liquidity trap.

Correct Answer:

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