Figure 13-5 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Multiple Choice

Figure 13-5 shows the short-run macroeconomic equilibrium of an economy. Which of the following will happen in the short run if there is an increase in aggregate demand?Figure 13-5

A) The creation of an inflationary gap
B) The creation of a recessionary gap
C) The restoration of the economy to its long-run equilibrium
D) A fall in the aggregate price level
E) An increase in the level of unemployment in the economy