-Refer to the graph in the exhibit.Suppose the economy is at point M.Which of the following characterizes the actual price level and the resulting gap?
A) The actual price level is lower than expected, with a $200 billion recessionary gap.
B) The actual price level is higher than expected, with a $200 billion recessionary gap.
C) The actual price level is lower than expected, with a $200 billion expansionary gap.
D) The actual price level is higher than expected, with a $200 billion expansionary gap.

Question

-Refer to the graph in the exhibit.Suppose the economy is at point M.Which of the following characterizes the actual price level and the resulting gap?  
A) The actual price level is lower than expected, with a $200 billion recessionary gap. 
B) The actual price level is higher than expected, with a $200 billion recessionary gap. 
C) The actual price level is lower than expected, with a $200 billion expansionary gap. 
D) The actual price level is higher than expected, with a $200 billion expansionary gap.

Quizplus · Accepted Answer

The Answer of 
-Refer to the graph in the exhibit.Suppose the economy is at point M.Which of the following characterizes the actual price level and the resulting gap?  
A) The actual price level is lower than expected, with a $200 billion recessionary gap. 
B) The actual price level is higher than expected, with a $200 billion recessionary gap. 
C) The actual price level is lower than expected, with a $200 billion expansionary gap. 
D) The actual price level is higher than expected, with a $200 billion expansionary gap.

-Refer to the Graph in the Exhibit