-Refer to Exhibit 9-3.The economy is in short-run equilibrium and has a recessionary gap at point

Name: -Refer to Exhibit 9-3.The economy is in short-run equilibrium and has a recessionary gap at point
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At point A, the economy is producing at a level below its potential output, indicating a recessionary gap. This is because the actual output is less than the full-employment output, leading to unemployment and underutilized resources.