Figure 13-7 shows the short-run macroeconomic equilibrium of an economy. In the figure, starting at Point A, a decrease in aggregate demand would result in:Figure 13-7
A)an increase in the inflationary gap.
B)an increase in the recessionary gap.
C)the restoration of long-run equilibrium.
D)a decrease in the inflationary gap.
E)an increase in the unemployment rate.

Question

Figure 13-7 shows the short-run macroeconomic equilibrium of an economy. In the figure, starting at Point A, a decrease in aggregate demand would result in:Figure 13-7 
A)an increase in the inflationary gap. 
B)an increase in the recessionary gap. 
C)the restoration of long-run equilibrium. 
D)a decrease in the inflationary gap. 
E)an increase in the unemployment rate.

Quizplus · Accepted Answer

The Answer of Figure 13-7 shows the short-run macroeconomic equilibrium of an economy. In the figure, starting at Point A, a decrease in aggregate demand would result in:Figure 13-7 
A)an increase in the inflationary gap. 
B)an increase in the recessionary gap. 
C)the restoration of long-run equilibrium. 
D)a decrease in the inflationary gap. 
E)an increase in the unemployment rate.

Figure 13-7 Shows the Short-Run Macroeconomic Equilibrium of an Economy