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

question 126

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:

Internal Struggle

The psychological conflict within an individual, often involving competing desires, beliefs, or needs.

Internal Struggle

A personal conflict within an individual, often involving competing values or desires.

Anticipated Threat

An expected or forecasted danger or problem that prompts preparation or preventive measures.

Preoccupation

The state of being absorbed or engrossed in thoughts or concerns about a particular issue or topic.