Exhibit 15-5
-If the economy pictured in Exhibit 15-5 is in equilibrium where AD = SRAS,then it
A)is experiencing a contractionary gap
B)will experience an increase in the price level if no government action is taken
C)is operating at the potential level of output
D)will experience a stable price level if no government action is taken
E)is operating at less than the economy's potential level of output

Question

Exhibit 15-5 
-If the economy pictured in Exhibit 15-5 is in equilibrium where AD = SRAS,then it
A)is experiencing a contractionary gap 
B)will experience an increase in the price level if no government action is taken 
C)is operating at the potential level of output 
D)will experience a stable price level if no government action is taken 
E)is operating at less than the economy's potential level of output

Quizplus · Accepted Answer

The Answer of Exhibit 15-5 
-If the economy pictured in Exhibit 15-5 is in equilibrium where AD = SRAS,then it
A)is experiencing a contractionary gap 
B)will experience an increase in the price level if no government action is taken 
C)is operating at the potential level of output 
D)will experience a stable price level if no government action is taken 
E)is operating at less than the economy's potential level of output

Exhibit 15-5 -If the Economy Pictured in Exhibit 15-5 Is in Equilibrium