The Diagram Below Shows an AD/AS Model for a Hypothetical

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 24-3
-Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from AD1 to AD2.The initial effect is

A) a recessionary output gap of 100.
B) a recessionary output gap of 300.
C) a recessionary output gap of 550.
D) an inflationary output gap of 200.
E) an inflationary output gap of 100.