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The AD-AS Model in the Diagram Below Shows That,in the Initial

question 121

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The AD-AS model in the diagram below shows that,in the initial short-run equilibrium point D,the economy is experiencing ___________ gap.Starting from point D,an income tax increase that shifts the aggregate demand curve from AD to AD' will lead to a new short-run equilibrium at point ___________.In this case,the tax hike,instead of eliminating the initial expansionary gap has,in fact,created ___________ gap.The tax authorities,in this case,have ___________ the size of the initial output gap. The AD-AS model in the diagram below shows that,in the initial short-run equilibrium point D,the economy is experiencing ___________ gap.Starting from point D,an income tax increase that shifts the aggregate demand curve from AD to AD' will lead to a new short-run equilibrium at point ___________.In this case,the tax hike,instead of eliminating the initial expansionary gap has,in fact,created ___________ gap.The tax authorities,in this case,have ___________ the size of the initial output gap.   A)  a recessionary;A;a recessionary;overestimated B)  an expansionary;A;a recessionary;underestimated C)  a recessionary;B;a recessionary;underestimated D)  an expansionary;B;a recessionary;overestimated E)  a recessionary;C;an expansionary;overestimated


Definitions:

Pointer Access

The act of using a pointer to read or modify the value of the variable it points to.

Subscript Notation

A method of accessing particular elements of an array or list by using an index enclosed in brackets.

Subscripts

Indexes used to access elements within an array.

Array Processing

Operations or techniques applied to arrays for manipulating, analyzing, or transforming the data they contain.

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