Figure 13-7 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Multiple Choice

Figure 13-7 shows the short-run macroeconomic equilibrium of an economy. In the figure, starting at Point A, a decrease in aggregate demand would result in:Figure 13-7

A) an increase in the inflationary gap.
B) an increase in the recessionary gap.
C) the restoration of long-run equilibrium.
D) a decrease in the inflationary gap.
E) an increase in the unemployment rate.