Multiple Choice
When the economy is producing Real GDP at a level at which the LRAS curve intersects the AD curve the economy is
A) in a recessionary gap.
B) in long-run equilibrium.
C) in an inflationary gap.
D) operating at less than full-employment output.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit
Q21: According to Say's law,<br>A) the demand curve
Q25: An inflationary gap exists when AD and
Q41: In the long run,changes in aggregate demand
Q43: A necessary condition for a money economy
Q99: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit
Q106: If the economy is in long-run equilibrium,<br>A)
Q155: If the natural unemployment rate is 5.5
Q159: Suppose the economy's short-run equilibrium point is
Q163: Exhibit 9-5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2061/.jpg" alt="Exhibit 9-5