-Based on the diagram above,an economy in short-run equilibrium at point A has a(n)___________ gap.The gap could be eliminated by the self-correcting mechanism of the model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________.
A) recessionary;B;C
B) recessionary;C;B
C) recessionary;C;C
D) expansionary;B;C
E) expansionary;C;B

Question

-Based on the diagram above,an economy in short-run equilibrium at point A has a(n)___________ gap.The gap could be eliminated by the self-correcting mechanism of the model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________.
A) recessionary;B;C 
B) recessionary;C;B 
C) recessionary;C;C 
D) expansionary;B;C 
E) expansionary;C;B

Quizplus · Accepted Answer

The Answer of 
-Based on the diagram above,an economy in short-run equilibrium at point A has a(n)___________ gap.The gap could be eliminated by the self-correcting mechanism of the model and eventually achieve a long-run equilibrium at point ________,or the central bank could intervene with monetary "easing" and the long-run equilibrium would be at point ________.
A) recessionary;B;C 
B) recessionary;C;B 
C) recessionary;C;C 
D) expansionary;B;C 
E) expansionary;C;B

-Based on the Diagram Above,an Economy in Short-Run Equilibrium at Point