Figure 13-6 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Multiple Choice

Figure 13-6 shows the short-run macroeconomic equilibrium of an economy. Which of the following will happen in the short run if there is a decrease in aggregate demand?Figure 13-6

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) An increase in the aggregate price level
E) An increase in the level of unemployment