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The Economy Pictured in the Given Figure Has A(n)________ Gap

Question 23

Multiple Choice

The economy pictured in the given figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. The economy pictured in the given figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. A) recessionary; A B) recessionary; B C) recessionary; C D) expansionary; A


A) recessionary; A
B) recessionary; B
C) recessionary; C
D) expansionary; A

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