Reference Ref 132 According to Exhibit 252 which point best

Reference: Ref 13-2

According to Exhibit 25-2, which point best represents where the U.S. economy was in 2009?

A

IA3 IA2 I/A 1 AD2 AD1 AD 3 % Deviation of Real GDP from Potential GDP

Solution

In 2009, there\'s a huge deviation of GDP of the US where th GDP reduced to a greater extent than the previous years. This implies that the inflation was on a higher node where the deviation was negative and inflation was high and the point that perfectly suits it is D

Therefore (b) D is the answer