Exhibit: The Aggregate Demand/Aggregate Supply Model 1 Which of the following statements is true?Group of answer choicesThe economy depicted in the figure experiences a recessionary gap = Yp-Y1. The economy depicted in the figure experiences a recessionary gap = Yp-Y2. The economy depicted in the figure experiences a recessionary gap = Y2-Y1. The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium./bar (Real GDP per year) Price level P3 P₂ P₁ Y₁ I I Y₂ LRAS SRAS AD Real GDP per year
Exhibit: The Aggregate Demand/Aggregate Supply Model 1 Which of the following statements is true?Group of answer choicesThe economy depicted in the figure experiences a recessionary gap = Yp-Y1. The economy depicted in the figure experiences a recessionary gap = Yp-Y2. The economy depicted in the figure experiences a recessionary gap = Y2-Y1. The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium./bar (Real GDP per year) Price level P3 P₂ P₁ Y₁ I I Y₂ LRAS SRAS AD Real GDP per year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Exhibit: The Aggregate Demand/Aggregate Supply Model 1 Which of the following statements is true?Group of answer
choicesThe economy depicted in the figure experiences a recessionary gap = Yp - Y1. The economy depicted in the
figure experiences a recessionary gap = YpY2. The economy depicted in the figure experiences a recessionary gap =
Y2 - Y1. The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium./bar (Real GDP
per year)
ง
Price level
LRAS
SRAS
P3
P2
P₁
I
Y₁
D
Y2
Yp
AD
Real GDP per year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F025c4b12-e137-4cd5-b2d1-a6e2ba3f5656%2F7c3aef4c-e6e9-4457-b3e6-81de65145ecb%2Fvqy37m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exhibit: The Aggregate Demand/Aggregate Supply Model 1 Which of the following statements is true?Group of answer
choicesThe economy depicted in the figure experiences a recessionary gap = Yp - Y1. The economy depicted in the
figure experiences a recessionary gap = YpY2. The economy depicted in the figure experiences a recessionary gap =
Y2 - Y1. The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium./bar (Real GDP
per year)
ง
Price level
LRAS
SRAS
P3
P2
P₁
I
Y₁
D
Y2
Yp
AD
Real GDP per year
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