AP Macroeconomics Question 156: Answer and Explanation

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Question: 156

10. Study the diagram below.

  • A. It is incorrect since Qf can never be to the left of QI.
  • B. It is incorrect because AD should slope upward and AS should slope down.
  • C. It portrays a recessionary gap.
  • D. It portrays an inflationary gap.
  • E. It portrays Phillips curves.

Correct Answer: D