Refer to the above graph to answer this question. Which graph illustratesrecessionary gap?A) AB) BC) DD) C Assume that the present price level is P1.Prico LovelPrice LevelaALASReal GDPсLASReal GDPASADASADPrice LevelPrice LevelaBLASReal GDPDReal GDPASADASAD

Potential GDP: Potential GDP is the full employment GDP. It is the level of GDP that the economy can…

Answered: Refer to the above graph to answer this…

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Refer to the above graph to answer this question. Which graph illustrates a recessionary gap? A) A B) B C) D D) C

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Chapter1: Making Economics Decisions

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Question

Assume that the present price level is P1.
Prico Lovel
Price Level
a
A
LAS
Real GDP
с
LAS
Real GDP
AS
AD
AS
AD
Price Level
Price Level
a
B
LAS
Real GDP
D
Real GDP
AS
AD
AS
AD

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