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-In the Above Figure, If the Economy Is in Equilibrium

Question 303

Multiple Choice

-In the above figure, if the economy is in equilibrium at E1, then A) the economy is producing below its potential long-run equilibrium at full employment. B) the economy is producing above its potential long-run equilibrium at full employment. C) there is an inflationary gap in the economy. D) the economy is in a period of high inflation.
-In the above figure, if the economy is in equilibrium at E1, then


A) the economy is producing below its potential long-run equilibrium at full employment.
B) the economy is producing above its potential long-run equilibrium at full employment.
C) there is an inflationary gap in the economy.
D) the economy is in a period of high inflation.

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