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Figure 13-8 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Question 92

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Figure 13-8 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 13-8 Figure 13-8 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 13-8 A) a further increase in the inflationary gap in the short run. B) a further increase in the recessionary gap in the short run. C) an immediate restoration of long-run equilibrium in the economy. D) a decrease in the inflationary gap in the short run. E) a decrease in the unemployment rate in the short run.


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

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