Question

How does an economist depict cyclical unemployment on an aggregate demand-aggregate supply (AD-AS) diagram? A) By...

How does an economist depict cyclical unemployment on an aggregate demand-aggregate supply (AD-AS) diagram?

A) By depicting the size of the inflationary gap.

B) By depicting how much the AD curve has moved past potential or full employment.

C) Showing how close the economy is to potential or full employment level of GDP.

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