-In the above figure, point B depicts
A) a recessionary gap with real GDP less than potential GDP.
B) an inflationary gap with real GDP in excess of potential GDP.
C) a recessionary gap with real GDP in excess of potential GDP.
D) an inflationary gap with real GDP less than potential GDP.

Question

-In the above figure, point B depicts
A) a recessionary gap with real GDP less than potential GDP. 
B) an inflationary gap with real GDP in excess of potential GDP. 
C) a recessionary gap with real GDP in excess of potential GDP. 
D) an inflationary gap with real GDP less than potential GDP.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, point B depicts
A) a recessionary gap with real GDP less than potential GDP. 
B) an inflationary gap with real GDP in excess of potential GDP. 
C) a recessionary gap with real GDP in excess of potential GDP. 
D) an inflationary gap with real GDP less than potential GDP.

-In the Above Figure, Point B Depicts