The figure below shows the short-run aggregate supply curve of an economy.If P₃ is the price level prevailing in the economy,_____. Figure 10.1 A)there is an expansionary gap. B)there is a recessionary gap. C)the price level will rise. D)the actual unemployment rate is above the natural rate. E)potential output is greater than actual output.

Question

Quizplus · Accepted Answer

The Answer of The figure below shows the short-run aggregate supply curve of an economy.If P₃ is the price level prevailing in the economy,_____. Figure 10.1 A)there is an expansionary gap. B)there is a recessionary gap. C)the price level will rise. D)the actual unemployment rate is above the natural rate. E)potential output is greater than actual output.

The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy.If