Refer to the figure below. Based on the Keynesian cross diagram, at short-run equilibrium output,
A)there is a recessionary gap.
B)there is an expansionary gap.
C)output equals potential output.
D)firms will be producing more than they can sell.

Question

Refer to the figure below.  Based on the Keynesian cross diagram, at short-run equilibrium output,
A)there is a recessionary gap. 
B)there is an expansionary gap. 
C)output equals potential output. 
D)firms will be producing more than they can sell.

Quizplus · Accepted Answer

The Answer of Refer to the figure below.  Based on the Keynesian cross diagram, at short-run equilibrium output,
A)there is a recessionary gap. 
B)there is an expansionary gap. 
C)output equals potential output. 
D)firms will be producing more than they can sell.

Refer to the Figure Below