Figure: Inflationary and Recessionary Gaps Price level Price level SRAS P₂ *** P₁ AD P₂ Panel (a) P₁ LRAS Panel (b) Real GDP LRAS Y Y₁ Real GDP SRAS AD Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y, in panel (a), the economy is in: full employment. a recessionary gap. an inflationary gap. O simultaneous short-run and long-run equilibrium.

Figure: Inflationary and Recessionary Gaps Price level Price level SRAS P₂ *** P₁ AD P₂ Panel (a) P₁ LRAS Panel (b) Real GDP LRAS Y Y₁ Real GDP SRAS AD Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y, in panel (a), the economy is in: full employment. a recessionary gap. an inflationary gap. O simultaneous short-run and long-run equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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