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Use the following to answer questions: Use the following to answer questions:   -(Figure: AD-AS) Refer to Figure: AD-AS.Suppose the economy is producing the output level Y<sub>P</sub> and a negative demand shock shifts the AD<sub>1</sub> curve to AD<sub>3</sub>.The economy now has a(n) _____ gap,which can be closed by _____ fiscal policy. A)  inflationary;expansionary B)  recessionary;contractionary C)  recessionary;expansionary D)  inflationary;contractionary
-(Figure: AD-AS) Refer to Figure: AD-AS.Suppose the economy is producing the output level YP and a negative demand shock shifts the AD1 curve to AD3.The economy now has a(n) _____ gap,which can be closed by _____ fiscal policy.


Definitions:

Protein Products

Molecules generated as a result of gene expression, composed of amino acids, and play various roles in the body such as catalytic, structural, and signaling functions.

Golgi Apparatus

A cell organelle responsible for the modification, sorting, and packaging of proteins and lipids for secretion or use within the cell.

Vesicles

Small, membrane-bound sacs within cells that transport, store, or metabolize materials.

Endomembrane System

A group of membranes and organelles in eukaryotic cells that work together to modify, package, and transport lipids and proteins.

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