The figure below shows the short-run aggregate demand and supply curves of an economy.In this figure,the distance between Y1 and Y2 represents:

A)an expansionary gap.
B)a recessionary gap.
C)a cost-push inflation.
D)the natural rate of unemployment.
E)the full employment output.

Question

The figure below shows the short-run aggregate demand and supply curves of an economy.In this figure,the distance between Y1 and Y2 represents:

A)an expansionary gap. 
B)a recessionary gap. 
C)a cost-push inflation. 
D)the natural rate of unemployment. 
E)the full employment output.

Quizplus · Accepted Answer

The Answer of The figure below shows the short-run aggregate demand and supply curves of an economy.In this figure,the distance between Y1 and Y2 represents:

A)an expansionary gap. 
B)a recessionary gap. 
C)a cost-push inflation. 
D)the natural rate of unemployment. 
E)the full employment output.

The Figure Below Shows the Short-Run Aggregate Demand and Supply