-Refer to Exhibit 15-5

Multiple Choice

-Refer to Exhibit 15-5.At short-run equilibrium,this economy is in a(n) ___________________ gap.An economist who believes that the economy is self-regulating would assert that _____________________________.

A) inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap
B) recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap
C) inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap
D) recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap