-Based on the Diagram Above,an Economy in Short-Run Equilibrium at Point

question 133

Multiple Choice

-Based on the diagram above,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 model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________.

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

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Definitions:

Alternative Hypothesis

A statement that directly contradicts the null hypothesis by stating there is a statistically significant effect or difference.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as a default position that there is no relationship between two measured phenomena.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, typically representing a new theory or perspective.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.