Multiple Choice
Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomic equilibrium, there is a(n) _____ gap with _____.
A) recessionary; high inflation
B) recessionary; low inflation
C) inflationary; high unemployment
D) inflationary; low unemployment
Correct Answer:

Verified
Correct Answer:
Verified
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