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The SRAS Is Horizontal at a Price Level of 3

Question 5

Multiple Choice

The SRAS is horizontal at a price level of 3. -According to the AD-AS model,the economy depicted above has a recessionary gap of size ___________ in the short run.In the long run,this output gap will be eliminated through a __________ in the price level to ___________. A) 50;rise;4 B) 50;fall;2 C) 50;fall;1 D) 100;rise;4 E) 100;fall;2 The SRAS is horizontal at a price level of 3.
-According to the AD-AS model,the economy depicted above has a recessionary gap of size ___________ in the short run.In the long run,this output gap will be eliminated through a __________ in the price level to ___________.


A) 50;rise;4
B) 50;fall;2
C) 50;fall;1
D) 100;rise;4
E) 100;fall;2

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