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The SRAS Is Horizontal at a Price Level of 4

Question 80

Multiple Choice

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


A) expansionary;50;rise;4
B) recessionary;50;fall;1
C) expansionary;50;rise;3
D) expansionary;100;rise;4
E) recessionary;100;fall;2

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