Inflationary and Recessionary Gaps Are Closed by the Economy's Self-Correcting

question 34

Multiple Choice

Inflationary and recessionary gaps are closed by the economy's self-correcting adjustments mechanism that shift

• A) the SRAS curve.
• B) the AD curve.
• C) the LRAS curve.
• D) both the SRAS and the LRAS curves.

---

Definitions:

Olfactory Cortex

A part of the brain involved in the perception and recognition of smells.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, responsible for detecting the five types of taste: sweet, sour, salty, bitter, and umami.

Vallate Papillae

Large, dome-shaped taste buds located at the back of the tongue, involved in the sensation of taste.

Secondary Olfactory

Refers to the brain's processing and perception areas for smells received from the primary olfactory receptors, involved in complex processes such as memory and emotions.