Refer to the Accompanying Figure

question 12

Multiple Choice

Refer to the accompanying figure. An economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing establishing the long-run equilibrium at point ________.

• A)recessionary; B; C
• B)recessionary; C; B
• C)expansionary; C; B
• D)expansionary; B; C

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Definitions:

E-mail

A method of exchanging messages digitally across the internet or other computer networks.

Automobile Title Certificate

A legal document issued by a government agency that proves ownership of a vehicle.

Document of Title

is a legal document that proves a person’s rights to possess and control goods or properties, often used in the context of shipping or storage.

UCC

The Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.