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

Question 69

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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>120</sub> since the expected price level is 120.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 AS120 since the expected price level is 120.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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