The figure below shows the short-run aggregate demand and supply curves of an economy.When real GDP is at Y2,_____.

A)potential output is greater than actual output.
B)there is a recessionary gap.
C)the price level is likely to fall.
D)the actual unemployment rate is less than the natural rate of unemployment.
E)aggregate demand is likely to increase to restore equilibrium.

Question

The figure below shows the short-run aggregate demand and supply curves of an economy.When real GDP is at Y2,_____.

A)potential output is greater than actual output. 
B)there is a recessionary gap. 
C)the price level is likely to fall. 
D)the actual unemployment rate is less than the natural rate of unemployment. 
E)aggregate demand is likely to increase to restore equilibrium.

Quizplus · Accepted Answer

The Answer of The figure below shows the short-run aggregate demand and supply curves of an economy.When real GDP is at Y2,_____.

A)potential output is greater than actual output. 
B)there is a recessionary gap. 
C)the price level is likely to fall. 
D)the actual unemployment rate is less than the natural rate of unemployment. 
E)aggregate demand is likely to increase to restore equilibrium.

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