The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of these statements is true if the economy described by this figure is at point M on SRAS₁₀₀? Figure 10.4 A)The actual price level is lower than expected with a $200 billion expansionary gap. B)The actual price level is lower than expected with a $200 billion recessionary gap. C)The actual price level is higher than expected with a $200 billion recessionary gap. D)The actual price level is higher than expected with a $200 billion expansionary gap. E)The economy is in equilibrium in the short run and the long run.

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The Answer of The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of these statements is true if the economy described by this figure is at point M on SRAS₁₀₀? Figure 10.4 A)The actual price level is lower than expected with a $200 billion expansionary gap. B)The actual price level is lower than expected with a $200 billion recessionary gap. C)The actual price level is higher than expected with a $200 billion recessionary gap. D)The actual price level is higher than expected with a $200 billion expansionary gap. E)The economy is in equilibrium in the short run and the long run.

The Figure Below Shows Equilibrium in an Aggregate Demand-Aggregate Supply