The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. 
FIGURE 24-6 Refer to Figure 24-6.In the initial short-run equilibrium,there is ________ output gap of ________,but this gap could be closed by a ________.
Definitions:
Basic Markets
Refers to the simplest forms of economic markets where goods and services are exchanged between buyers and sellers under minimal regulations or complexities.
Resource Market
A marketplace where resources or inputs (like labor, capital, and raw materials) needed for production are bought and sold.
Incentive Problem
A situation where the economic incentives offered do not align with desirable outcomes, leading to inefficiency or undesired behavior.
Communist Central Planning
An economic system where the government makes all decisions regarding the production and distribution of goods and services.
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