Q 132

img -Based on the diagram above,an economy in short-run equilibrium at point A has a(n)___________ gap.The gap could be eliminated by the self-correcting mechanism of the model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________. A) recessionary;B;C B) recessionary;C;B C) recessionary;C;C D) expansionary;B;C E) expansionary;C;B

Multiple Choice