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

question 26

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The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. 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 ________. A) a recessionary; 100; fiscal contraction B) a recessionary; 200; fiscal expansion C) a recessionary; 200; fiscal contraction D) an inflationary; 100; fiscal contraction E) an inflationary; 200; fiscal expansion 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 ________.


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