In part (b) of Exhibit 14A.8, the intersection of SRAS with AD indicates a. an economy experiencing a recessionary gap. b. an economy experiencing an inflationary gap. c. that the economy is in...

In part (b) of Exhibit 14A.8, the intersection of

SRAS with AD indicates

a. an economy experiencing a recessionary gap.

b. an economy experiencing an inflationary gap.

c. that the economy is in long-run equilibrium.

d. that the economy has an unemployment rate

currently less than the natural rate of

unemployment.