Figure 13.2 -Refer to Figure 13.2.Assume the Economy Is Initially in Equilibrium

Multiple Choice

Figure 13.2

-Refer to Figure 13.2.Assume the economy is initially in equilibrium with real GDP equal to potential GDP.Other things equal,if the economy enters a recession,the inflation rate would ________ and the output gap would ________ if there are,as opposed to are not,automatic stabilizers in the economy.

A) decrease less; decrease less
B) decrease more; decrease more
C) decrease more; decrease less
D) not change; not change