Multiple Choice
-Based on the diagram above,starting from a long-run equilibrium at point C,an increase in government spending that increases aggregate demand from ADI to ADI1 will lead to a short-run equilibrium at point ________,creating _________ gap.
A) D;an expansionary
B) D;a recessionary
C) D;no output
D) B;an expansionary
E) B;a recessionary
Correct Answer:
Verified
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