-In the above figure, the short- run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap exists
A) if the long- run aggregate supply curve is LAS1.
B) if the long- run aggregate supply curve is LAS3.
C) if the long- run aggregate supply curve is LAS2.
D) All of the above answers are correct.
Correct Answer:
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Q263: Q312: Q313: Q314: Q316: If the economy is in long run Q318: A lower price level combined with a Q319: The government increases taxes. As a result, Q320: The Federal Reserve lowers interest rates. As Q321: Q322: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents