The figure below shows the short-run aggregate supply curve of an economy. If P₃ is the price level prevailing in the economy, _____. A) there is an expansionary gap. B) there is a recessionary gap. C) the price level will rise. D) the actual unemployment rate is above the natural rate. E) potential output is greater than actual output.

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The Answer of The figure below shows the short-run aggregate supply curve of an economy. If P₃ is the price level prevailing in the economy, _____. A) there is an expansionary gap. B) there is a recessionary gap. C) the price level will rise. D) the actual unemployment rate is above the natural rate. E) potential output is greater than actual output.

The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy