-In the above figure, point A represents
A) an increase in aggregate demand.
B) a recessionary gap.
C) an inflationary gap.
D) a full-employment equilibrium.

Name: -In the above figure, point A represents A) an increase in aggregate demand. B) a recessionary gap. C) an inflationary gap. D) a full-employment equilibrium.
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Question

-In the above figure, point A represents
A) an increase in aggregate demand. 
B) a recessionary gap. 
C) an inflationary gap. 
D) a full-employment equilibrium.

Quizplus · Accepted Answer

Point A represents a recessionary gap, where the actual output is less than the potential output, indicating underutilization of resources and unemployment.

-In the Above Figure, Point a Represents