-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from
To
1 will lead to a short-run equilibrium at point ________,creating _________ gap.
A) A;an expansionary
B) A;a recessionary
C) A;no output
D) B;an expansionary
E) B;a recessionary

Question

-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from 
To 
1 will lead to a short-run equilibrium at point ________,creating _________ gap.
A) A;an expansionary 
B) A;a recessionary 
C) A;no output 
D) B;an expansionary 
E) B;a recessionary

Quizplus · Accepted Answer

The Answer of 
-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from 
To 
1 will lead to a short-run equilibrium at point ________,creating _________ gap.
A) A;an expansionary 
B) A;a recessionary 
C) A;no output 
D) B;an expansionary 
E) B;a recessionary

-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point