The diagrams illustrate an economy’s performance measured in different ways (three diagrams with point X). If the economy is currently located at point X on each diagram, what is the most likely conclusion that can be drawn from this evidence?
- APrices will increase significantly as the economy grows in the near future.
- BSupply-side policies would be the best option to encourage economic growth.
- CThe economy is currently experiencing a deflationary gap.
- DThere are shortages of skilled labour throughout the economy.