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

Question 137
Multiple Choice

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