The SRAS Is Horizontal at a Price Level of 3

question 5

Multiple Choice

The SRAS is horizontal at a price level of 3.
-According to the AD-AS model,the economy depicted above has a recessionary gap of size ___________ in the short run.In the long run,this output gap will be eliminated through a __________ in the price level to ___________.

• A) 50;rise;4
• B) 50;fall;2
• C) 50;fall;1
• D) 100;rise;4
• E) 100;fall;2

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Definitions:

Synovial Membrane

The soft tissue that lines the inner surface of synovial joints, producing synovial fluid for lubrication.

Lubricating Film

A thin layer of liquid or substance applied to surfaces to minimize friction and wear, commonly found in mechanical systems, joints, and tissues.

Smooth Surface

A surface with an even and uninterrupted texture, free of noticeable bumps, ridges, or indentations.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between articular cartilages during movement.