The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at:
Figure 16.2

A)point A.
B)point B.
C)point C.
D)a point to the right of point A.
E)a point below C.

Question

The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at:​ ​
Figure 16.2
​

A)point A. 
B)point B. 
C)point C. 
D)a point to the right of point A. 
E)a point below C.

Quizplus · Accepted Answer

The Answer of The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,once the expansionary gap is eliminated,the economy will end up at:​ ​
Figure 16.2
​

A)point A. 
B)point B. 
C)point C. 
D)a point to the right of point A. 
E)a point below C.

The Figure Below Shows the Price Level,real GDP,and the Potential