Question: Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Real GDP and a vertical axis labeled Price level.

Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Real GDP and a vertical axis labeled Price level. A line labeled S R A S rises from left to right. A line labeled A D falls from left to right and intersects the line segment S R A S at the point A. A vertical line labeled L R A S is drawn perpendicular to the horizontal axis and goes up intersecting both slant line segments A D and SRAS respectively. A vertical line is drawn from the point Y on the horizontal axis that goes up to intersect the point A and is to the left of the LRAS line. A horizontal line labeled P is drawn perpendicular to the vertical axis and ends at point A. Which of the following statements is true about the economy in question? (2 points) The economy is experiencing a positive output gap and is producing less than its full employment output. The economy is experiencing a negative output gap and is producing equal to its full employment output. The economy is experiencing a negative output gap and is producing less than its full employment output

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