An Economy Is Characterized by the AD Equation P =

Multiple Choice

An economy is characterized by the AD equation P = 210 - 0.02Y,SRAS equation P = 100 and LRAS equation Y* = 6,000.According to the AD-AS model,this economy currently has a(n) ___________ gap of size ___________.In the absence of any change in government policy,the long-run equilibrium price level in this economy will be ___________ and the output level will be 6,000.

A) recessionary;500;90
B) expansionary;500;110
C) recessionary;500;120
D) expansionary;450;90
E) expansionary;500;90