Without being able to see the specific chart you refer to, I can't provide a definitive answer to the question. However, I can describe the differences between the terms mentioned:
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Recessionary Gap: This occurs when actual output is less than potential output, suggesting that the economy is not utilizing all of its resources efficiently, often leading to unemployment.
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Expansionary Gap: This situation arises when actual output exceeds potential output, which can lead to inflationary pressures as the economy operates above its sustainable capacity.
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Maximum Potential Output: This refers to the highest level of output an economy can sustain over time without leading to inflation, assuming all resources are utilized efficiently.
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Full Employment: This does not mean that everyone is employed, but rather that all resources are being used efficiently and that there is only natural unemployment (frictional and structural) present.
If the chart indicates that actual output is below potential output, the country is likely in a recessionary gap. If actual output is above potential output, then it has an expansionary gap. If it shows both outputs are equal, the country might be achieving maximum potential output or is at full employment.
If you can describe the chart or provide details, I might be able to assist further in determining the correct answer.