Solved

According to the AD-AS Model,the Economy Depicted in the Diagram

Question 94

Multiple Choice

According to the AD-AS model,the economy depicted in the diagram below has a(n) ___________ gap at point B and is experiencing downward pressure on the price level.Other things remaining the same,the SRAS curve in this economy will shift down over time and,in the long run,its price level will be ___________ and its output level will be ___________. According to the AD-AS model,the economy depicted in the diagram below has a(n) ___________ gap at point B and is experiencing downward pressure on the price level.Other things remaining the same,the SRAS curve in this economy will shift down over time and,in the long run,its price level will be ___________ and its output level will be ___________.   A)  recessionary;7;450 B)  expansionary;7;500 C)  recessionary;7;500 D)  recessionary;10;450 E)  expansionary;10;450


A) recessionary;7;450
B) expansionary;7;500
C) recessionary;7;500
D) recessionary;10;450
E) expansionary;10;450

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions