The AD-AS Model in the Diagram Above Shows That at the Initial

question 132

Multiple Choice

The AD-AS model in the diagram above shows that at the initial short-run equilibrium point A,the economy is experiencing ___________ gap.Starting from point A,a decrease in government purchases that shifts the aggregate demand curve from AD to AD' will lead to the long-run equilibrium at point C,thus decreasing output at a ___________ price level and eliminating the output gap.

• A) a recessionary;constant
• B) an expansionary;constant
• C) a recessionary;lower
• D) an expansionary;higher
• E) an expansionary;lower

---

Definitions:

Problem-Focused Coping

A strategy involving tackling a stressful situation directly to alleviate stress or eliminate its cause.

Optimistic

Having a hopeful or positive outlook on the future or the outcome of specific situations.

Social Isolation

Refers to a state where an individual has minimal contact or interaction with others, leading to feelings of loneliness and potentially impacting mental and physical health.

Problem-Focused Coping

A strategy of dealing with stress by tackling the problem that is causing stress directly.