Figure 13-8 Shows the Short-Run Macroeconomic Equilibrium of an Economy

question 92

Multiple Choice

Figure 13-8 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 13-8

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

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