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Exhibit 10-12 -Consider Exhibit 10-12.Aggregate Demand Is Represented by AD0 and the AD0

Question 176

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Exhibit 10-12 Exhibit 10-12 -Consider Exhibit 10-12.Aggregate demand is represented by AD<sub>0</sub> and the aggregate supply is AS<sub>100</sub> since the expected price level is 100.Which of the following describes the current situation for this economy? A) an expansionary gap exists B) a recessionary gap exists C) a long-run equilibrium exists D) an employment gap exists E) an economic growth gap exists
-Consider Exhibit 10-12.Aggregate demand is represented by AD0 and the aggregate supply is AS100 since the expected price level is 100.Which of the following describes the current situation for this economy?


A) an expansionary gap exists
B) a recessionary gap exists
C) a long-run equilibrium exists
D) an employment gap exists
E) an economic growth gap exists

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