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 ___________.
A) recessionary;7;450
B) expansionary;7;500
C) recessionary;7;500
D) recessionary;10;450
E) expansionary;10;450
Correct Answer:

Verified
Correct Answer:
Verified
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