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Figure: Inflationary and Recessionary Gaps Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y<sub>1</sub> in panel (b) , a contractionary policy to bring the economy back to potential output at Y<sub>P</sub> would attempt to shift the: A) SRAS to the left. B) LRAS to the left. C) aggregate demand curve to the left by decreasing aggregate demand. D) aggregate demand curve to the right by increasing aggregate demand.
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y1 in panel (b) , a contractionary policy to bring the economy back to potential output at YP would attempt to shift the:

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