Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps 
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y1 in panel (b) , the economy is in:
A) a recessionary gap.
B) an inflationary gap.
C) simultaneous short-run and long-run equilibrium.
D) a high level of unemployment.
Correct Answer:
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Q226: When the economy is in a recessionary
Q227: Use the following to answer questions:
Figure: Inflationary
Q228: Use the following to answer questions:
Figure: Shifts
Q229: A positive demand shock will result from:
A)
Q230: Stabilization policies have:
A) not reduced the effects
Q232: Use the following to answer questions:
Figure: Shifts
Q233: Use the following to answer questions:
Figure: AD-AS
Q234: Use the following to answer questions:
Figure: Inflationary
Q235: Use the following to answer questions:
Figure: Inflationary
Q236: Use the following to answer questions:
Figure: An
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