If $\tilde { Y } _ { t } = 0$ , the macroeconomy is:
A) at its potential level of output
B) in a recessionary gap
C) in an expansionary gap
D) Not enough information is given.
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

When $\tilde { Y } _ { t } = 0$, it indicates that the actual output is equal to the potential output, meaning the economy is operating at its potential level of output.

If Y~t=0\tilde { Y } _ { t } = 0Y~t​=0

If $\tilde { Y } _ { t } = 0$