A recessionary gap occurs when
A) aggregate demand falls, but other things remain constant.
B) the short-run equilibrium level of real GDP is less than the level consistent with the long-run aggregate supply curve.
C) the short-run equilibrium level of real GDP is greater than the level consistent with the long-run aggregate supply curve.
D) short-run aggregate supply falls, but other things remain constant.
B
Economics
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Use the above figure. The total revenue earned by this monopolistically competitive firm is
A) $2,560. B) $1,600. C) $480. D) $1,900.
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