Refer to the Following Figure When Answering

Multiple Choice

Refer to the following figure when answering
Figure 9.1: Output versus Time

-Consider Figure 9.1. The dashed line is potential output and the solid line is current output; therefore:

A) areas a and b are booms
B) area b represents an economic boom, and area a is a recession
C) the economy is in neither a recession nor a boom in areas a and b
D) area a represents an economic boom, and area b is a recession
E) areas a and b are expansions