Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. The intersection of SRAS with AD in panel (a) indicates an economy:

A) in a recessionary gap.
B) in an inflationary gap.
C) in long-run equilibrium.
D) with an unusually low unemployment rate.