Based on the Figure Below

Multiple Choice

Based on the figure below. An economy in short-run equilibrium at point A has a(n) _______ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ____ or the central bank could intervene with monetary easing establishing the long-run equilibrium at point ____.

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