If Aggregate Demand Increases by the Amount of the Recessionary

question 1

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.

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Definitions:

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Distrust

Lack of trust or confidence in someone or something, often based on past experiences or perceived risks.

Motives

The reasons or drives behind an individual's actions or decisions.

Behavior Patterns

Recurrent ways of acting or responding that are characteristic of an individual or group.