Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps 
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. The level of income associated with Y1 in panel (b) :
A) is equal to potential output.
B) reveals an inflationary gap compared with Yp.
C) is a long-run equilibrium.
D) is caused by flexible wages and prices.
Correct Answer:
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Q180: Stagflation is usually caused by a _
Q181: Use the following to answer questions:
Figure: An
Q182: Use the following to answer questions:
Figure: Inflationary
Q183: When the economy is producing output above
Q184: When the economy is producing output below
Q186: An inflationary gap is automatically closed by
Q187: Use the following to answer questions:
Figure: Inflationary
Q188: An inflationary gap:
A) is generally regarded as
Q189: Inflationary and recessionary gaps are closed by
Q190: Use the following to answer questions:
Figure: Policy
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