Figure 13-7 Shows the Short-Run Macroeconomic Equilibrium of an Economy

question 61

Multiple Choice

Figure 13-7 shows the short-run macroeconomic equilibrium of an economy. In the figure, starting at Point A, a decrease in aggregate demand would result in:Figure 13-7

• A)an increase in the inflationary gap.
• B)an increase in the recessionary gap.
• C)the restoration of long-run equilibrium.
• D)a decrease in the inflationary gap.
• E)an increase in the unemployment rate.

---

Definitions:

Basis of Bargain

The fundamental assumptions or agreements that form the underlying basis for a contract or transaction.

Furlong v. Alpha Chi Omega

A specific legal case or controversy, but without further detail, its significance cannot be determined. If it's a real case, it would be related to a legal dispute involving the parties named.

Shipment Contract

A legal agreement specifying that the seller will bear the risk of loss or damage to the goods until they are delivered to the carrier.

Ex-Ship

A term from international trade indicating that the seller's responsibility ends once the goods are available for unloading from the ship at the destination port.