Multiple Choice
The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. 
FIGURE 24-4 Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in
A) a recessionary output gap of 250.
B) a recessionary output gap of 450.
C) an inflationary output gap of 200.
D) an inflationary output gap of 300.
E) an inflationary output gap of 550.
Correct Answer:
Verified
Correct Answer:
Verified
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