The graph shows a business cycle. Draw points on the curve that show when the economy is at: 1) full employment. Label it 1. 2) a below full-employment equilibrium. Label it 2. 3) an above full-employment equilibrium. Label it 3. In the graph, the vertical distance between the horizontal Potential GDP line and point 2 is gap. At point 2, the intersection of the AD and SAS curves is to the of the LAS curve. 0 A. an inationary; left; 0 B. a recessionary; right; 0 C. an inationary; right; 0 D. a recessionary; left; The vertical distance between the horizontal Potential GDP line and point 3 is gap. At point 3, the intersection of the AD and SAS curves is to the of the LAS curve. 0 A. an inationary; left 0 B. a recessionary; left 0 C. a recessionary; right n n I". innnnnnr- rinI-I'v Real GDP (trillions of 2007 dollars) Year >>> Draw only the objects specied in the question. 9,0 E