Use the following to answer question 28: Figure: Inflationary and Recessionary Gaps Price level Panel (a) LRAS Panel (b) Price level LRAS SRAS SRAS P3 P P Y Yp Real GDP AD P3 P2 P Yp Y Real GDP AD 28. (Figure: Inflationary and Recessionary Gaps) In Panel (b), the level of income associated with Y: A) is equal to potential output. B) when compared with Y,, would reveal an inflationary gap. C) is a long-run equilibrium. D) is caused by flexible wages and prices.