z Information LAS Price Level Budget balance AS AD, 'AD, Real GDP BL BL2 Real GDP Refer to the graph above to answer this question. If this economy is experiencing a recessionary gap, which of the following could be correct? Real GDP is Y1 and there is a budget deficit. Real GDP is Y1 and there is a budget surplus. Real GDP is Y2 and there is a balanced budget. Real GDP is Y1 and there is a balanced budget