-Based on the Diagram Above,starting from a Long-Run Equilibrium at Point

question 107

Multiple Choice

-Based on the diagram above,starting from a long-run equilibrium at point C,a downward inflation shock that decreases inflation from
To 11ec9ae2_bd79_1ce7_a39a_a9c7bc0c6307_TB34225555_11
1 will lead to a short-run equilibrium at point ________,creating _________ gap.

• A) A;an expansionary
• B) A;a recessionary
• C) A;no output
• D) B;an expansionary
• E) B;a recessionary

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