In the above figure, point B depicts
A. an inflationary gap with real GDP in excess of potential GDP.
B. an inflationary gap with real GDP less than potential GDP.
C. a recessionary gap with real GDP in excess of potential GDP.
D. a recessionary gap with real GDP less than potential GDP.
Answer:A
In the above figure, point B depicts
A. an inflationary gap with real GDP in excess of potential GDP. B. an inflationary gap with real GDP less than potential GDP. C. a recessionary gap with real GDP in excess of potential GDP. D. a recessionary gap with real GDP less than potential GDP.