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

question 8

Multiple Choice

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

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

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Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of numerical data from its mean.

Bar Graph

A visual representation of data using bars of different heights or lengths to compare values across categories.

Correlational Measures

Statistical methods used to determine the relationship or association between two variables without inferring cause and effect.

Economic Status

The position or rank of an individual or group within the societal hierarchy, often measured by income, wealth, education, and employment.