-In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap.
B) There is an inflationary gap.
C) Point A is the long-run equilibrium point.
D) None of the above answers are correct.

Question

-In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap. 
B) There is an inflationary gap. 
C) Point A is the long-run equilibrium point. 
D) None of the above answers are correct.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap. 
B) There is an inflationary gap. 
C) Point A is the long-run equilibrium point. 
D) None of the above answers are correct.

-In the Above Figure, If the Economy Is at Point