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:
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Q21: Exhibit 9-2 Q22: Exhibit 9-1 Q23: In a "self-regulating" economy,inflationary and recessionary gaps Q27: If the economy is in a recessionary Q39: The long-run aggregate supply (LRAS)curve is Q60: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)
A) horizontal.
B)
