The Figure Below Shows Short-Run Equilibrium in an Aggregate Demand-Aggregate

question 13

Multiple Choice

The figure below shows short-run equilibrium in an aggregate demand-aggregate supply model.If the economy is currently producing Y₁ level of output,long-run equilibrium will be established if:​ ​
Figure 10.5

• A)the short-run aggregate supply curve shifts to the right to remove the expansionary gap.
• B)the short-run aggregate supply curve shifts to the left to remove the expansionary gap.
• C)the short-run aggregate supply curve shifts to the left to remove the recessionary gap.
• D)the short-run aggregate supply curve shifts to the right to remove the recessionary gap.
• E)there is a leftward shift of the aggregate demand curve.

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Definitions:

Sub-Saharan African Countries

Nations located in the African region south of the Sahara Desert, characterized by diverse cultures, languages, and economic conditions.

Fertility Rates

The average number of children born to a woman over her lifetime within a specific population.

Developing Countries

Nations with a lower level of industrialization, lower living standards, and lower Human Development Index than developed countries.

Women Employment

Refers to the participation and integration of women in the workforce and labor markets.