Use the Following to Answer Questions

question 157

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) Suppose the economy is initially at point A. Now suppose an increase in government purchases shifts the aggregate demand curve to AD₂. As a result,

• A) the economy is not in equilibrium because it operates with an output gap.
• B) the economy is in short-run equilibrium and it operates with an inflationary gap.
• C) the economy is in short-run equilibrium and it operates with a recessionary gap.
• D) the economy is not in equilibrium because the unemployment rate is not equal to the natural rate of unemployment.

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Definitions:

Amino Acid Sequence

The order of amino acids in a protein, which determines the protein's structure and function.

Nucleotide Sequence

The order of nucleotides in a DNA or RNA strand that encodes for genetic information.

Amino Acids

Organic compounds containing amine and carboxyl functional groups, serving as the building blocks of proteins.

Nucleotide Sequence

The order of nucleotides in a strand of DNA or RNA, which determines the genetic information carried by that strand.