-In the above figure, point B represents
A) a full-employment equilibrium.
B) a recessionary gap.
C) a decrease in aggregate demand.
D) an inflationary gap.

Question

-In the above figure, point B represents
A) a full-employment equilibrium. 
B) a recessionary gap. 
C) a decrease in aggregate demand. 
D) an inflationary gap.

Quizplus · Accepted Answer

Point B represents a full-employment equilibrium because at this point, the aggregate demand (AD) curve intersects the aggregate supply (AS) curve at the full-employment level of output.

-In the Above Figure, Point B Represents