Use the following to answer questions . Exhibit: The Aggregate Demand/Aggregate Supply Model 2 -(Exhibit: The Aggregate Demand/Aggregate Supply Model 2) Which of the following statements is true? A) The economy depicted in the figure experiences an inflationary gap = Y₂-Y_p. B) The economy depicted in the figure experiences an inflationary gap = Y₁-Y_p. C) The economy depicted in the figure experiences an inflationary gap = Y₁-Y₂. D) The economy depicted in the figure is in long-run equilibrium but not in short-run equilibrium.

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The economy depicted in the figure experiences an inflationary gap = Y₂F1F1F1S1F1F1F10Y_p.

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