Point A suggests:
A)an economy operating with an inflationary gap.
B)an economy operating with a recessionary gap.
C)an economy operating at long-run equilibrium.
D)There is not sufficient information to draw a conclusion.

Question

Point A suggests: 
A)​an economy operating with an inflationary gap. 
B)​an economy operating with a recessionary gap. 
C)​an economy operating at long-run equilibrium. 
D)​There is not sufficient information to draw a conclusion.

Quizplus · Accepted Answer

The presence of a recessionary gap indicates that the economy is producing below its potential output, which means that there are unemployed resources such as labor and capital. The code "TB5768_00" at the end of Point A could be a reference to a specific period or region, but it does not provide enough information to determine the state of the economy at that time.

Point a Suggests