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Question 163

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Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. At E<sub>2</sub>, the economy: A) is in equilibrium. B) has an inflationary gap. C) has a recessionary gap. D) has high unemployment.
-(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. At E2, the economy:


A) is in equilibrium.
B) has an inflationary gap.
C) has a recessionary gap.
D) has high unemployment.

Correct Answer:

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