Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Figure: Short- and Long-Run Equilibrium
-(Figure: Short- and Long-Run Equilibrium) Look at the figure Short- and Long-Run Equilibrium. If the economy is at equilibrium at E₁, it is in a(n) :

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