The AD-AS Model in the Diagram Above Shows That at the Initial

Multiple Choice

The AD-AS model in the diagram above shows that at the initial short-run equilibrium point A,the economy is experiencing ___________ gap.Other factors remaining the same,the self-correcting mechanism of the economy will result in ___________ prices and ___________ output until the economy eventually moves the point at B,thus eliminating the output gap.

A) a recessionary;falling;falling
B) an expansionary;rising;falling
C) a recessionary;rising;rising
D) an expansionary;falling;rising
E) an expansionary;falling;falling