Figure 16-8 -Refer to Figure 16-8. the Recessionary Gap at Point 4

Figure 16-8
-Refer to Figure 16-8. The recessionary gap at point 4 was created

A) during the Phillips phase that occurred when the economy moved from point 3 to point 4.
B) when policymakers pursued expansionary policies to move the economy from point 3 to point 4.
C) during the stagflation phase that occurred when the economy moved from point 3 to point 4.
D) during the recovery phase when economic agents revised their price expectations in higher prices.