If Aggregate Demand Increases by the Amount of the Recessionary

question 88

Multiple Choice

If aggregate demand increases by the amount of the recessionary GDP gap and aggregate supply is upward-sloping,

• A)The economy will move to full employment.
• B)An AD surplus will occur.
• C)A recessionary GDP gap will still exist.
• D)An inflationary GDP gap will develop.

---

Definitions:

Former Slaves

Individuals who were previously subjected to slavery but gained freedom, often through emancipation laws, abolition movements, or personal liberation.

Southern Women

Refers to women who live in or originate from the Southern United States, with a specific focus on their unique cultural, social, and historical experiences.

Food Shortages

Situations where the supply of food is insufficient to meet the demand, often leading to hunger, malnutrition, and increased food prices.

All-Female Cooperatives

Economic organizations entirely managed and operated by women aimed at promoting female entrepreneurship and economic independence.