-Based on the Diagram Above,an Economy in Short-Run Equilibrium at Point

Multiple Choice

-Based on the diagram above,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 model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________.

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