-Refer to the Graph in the Exhibit

question 12

Multiple Choice

-Refer to the graph in the exhibit.How would long-run equilibrium be established, assuming no government intervention?  

• A) by an increase in short-run aggregate supply to remove the expansionary gap
• B) by a decrease in short-run aggregate supply to remove the expansionary gap
• C) by a decrease in short-run aggregate supply to remove the recessionary gap
• D) by an increase in short-run aggregate supply to remove the recessionary gap

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