-Refer to the above figure. The changes represented
A)increase real GDP.
B)lead to a recessionary gap.
C)lead to an inflationary gap.
D)cannot occur because aggregate demand and short- run aggregate supply cannot change at the same time.

Question

-Refer to the above figure. The changes represented
A)increase real GDP. 
B)lead to a recessionary gap. 
C)lead to an inflationary gap. 
D)cannot occur because aggregate demand and short- run aggregate supply cannot change at the same time.

Quizplus · Accepted Answer

An increase in both aggregate demand and short-run aggregate supply typically leads to an increase in real GDP.

-Refer to the Above Figure. the Changes Represented