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

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

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

Quizplus · Accepted Answer

Point C represents an inflationary gap, where the actual output exceeds the full-employment level of output, leading to upward pressure on prices.

-In the Above Figure, Point C Represents