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

question 57

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run equilibrium at point A. FIGURE 24-7
-Consider Figure 24-7.At the initial short-run equilibrium,there is ________ output gap of ________.This gap could be closed by a ________.

• A)a recessionary; 100; fiscal contraction
• B)a recessionary; 200; fiscal expansion
• C)an inflationary; 100; fiscal contraction
• D)an inflationary; 200; fiscal contraction
• E)an inflationary; 350; fiscal expansion

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Definitions:

Breathing Difficulty

Challenges or discomfort in inhaling or exhaling air, which can be a symptom of various health conditions.

ATP

Adenosine triphosphate, a molecule that carries energy within cells, providing the necessary power for most cellular activities.

Proteins

Large, complex molecules essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Carbohydrates

Organic compounds, found in foods and living tissues, including sugars, starch, and cellulose, which are an important energy source.