The data in the above table show that when the price level is 120, the economy
A. is in a long-run macroeconomic equilibrium.
B. has an inflationary gap.
C. has a recessionary gap.
D. will have falling money wage rates sometime in the future.
Answer:C
The data in the above table show that when the price level is 120, the economy
A. is in a long-run macroeconomic equilibrium. B. has an inflationary gap. C. has a recessionary gap. D. will have falling money wage rates sometime in the future.