Use the table below to answer the following questions.
Table 10.3.3

-Refer to Table 10.3.3.When the economy is at its short- run macroeconomic equilibrium, the economy
A)is also in a long- run macroeconomic equilibrium.
B)has an inflationary gap.
C)has neither an inflationary nor a recessionary gap.
D)has a recessionary gap.
E)is in an above full- employment equilibrium.

Question

Use the table below to answer the following questions.
Table 10.3.3
 
-Refer to Table 10.3.3.When the economy is at its short- run macroeconomic equilibrium, the economy
A)is also in a long- run macroeconomic equilibrium. 
B)has an inflationary gap. 
C)has neither an inflationary nor a recessionary gap. 
D)has a recessionary gap. 
E)is in an above full- employment equilibrium.

Quizplus · Accepted Answer

In the short-run macroeconomic equilibrium, if the economy is not at full employment, it typically experiences either an inflationary or recessionary gap. A recessionary gap occurs when actual output is less than potential output, indicating underutilized resources.

Use the Table Below to Answer the Following Questions