Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps 
-(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. A movement from AD1 to AD3 could be caused by:
Definitions:
Average Cost
The total cost of production divided by the number of units produced, indicating the cost per unit of output.
Rent-Seeking Behavior
Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.
Net Social Gain
The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.
Innovation
The process of creating new products, services, processes, or technologies that deliver value to society or the market.
Q110: Suppose the economy is operating at an
Q112: (Figure: Short-Run Equilibrium) Look at the figure
Q120: If the economy is at equilibrium above
Q146: Which of the following is an advantage
Q187: (Figure: AD-AS) Look at the figure AD-AS.
Q213: Generally bonds are considered to be riskier
Q253: (Scenario: Money Creation) Look at the scenario
Q256: Automatic stabilizers are government spending and taxation
Q316: Which statement is CORRECT?<br>A)Automatic stabilizers indicate deliberate
Q377: (Figure: The Market for Loanable Funds with