The Diagram Below Shows an AD/AS Model for a Hypothetical

question 143

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4 Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in

• A)a recessionary output gap of 250.
• B)a recessionary output gap of 450.
• C)an inflationary output gap of 200.
• D)an inflationary output gap of 300.
• E)an inflationary output gap of 550.

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Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Fear

An emotional response to a perceived threat, which triggers a physiological reaction aimed at avoiding or confronting the danger.

Predict

To declare or indicate a future event or outcome based on observation, experience, or scientific reasoning.

Unconditional Positive Regard

A term in psychology that expresses accepting and supporting a person regardless of what they say or do, especially used in client-centered therapy.