-Refer to Exhibit 15-5.At short-run equilibrium,this economy is in a(n)___________________ gap.An economist who believes that the economy is self-regulating would assert that _____________________________.
A) inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap
B) recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap
C) inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap
D) recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap

Question

-Refer to Exhibit 15-5.At short-run equilibrium,this economy is in a(n)___________________ gap.An economist who believes that the economy is self-regulating would assert that _____________________________.
A) inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap 
B) recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap 
C) inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap 
D) recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap

Quizplus · Accepted Answer

The Answer of 
-Refer to Exhibit 15-5.At short-run equilibrium,this economy is in a(n)___________________ gap.An economist who believes that the economy is self-regulating would assert that _____________________________.
A) inflationary; the SRAS curve will shift leftward sufficiently to close the inflationary gap 
B) recessionary; the SRAS curve will shift rightward sufficiently to close the recessionary gap 
C) inflationary; the AD curve will shift leftward sufficiently to close the inflationary gap 
D) recessionary; the AD curve will shift rightward sufficiently to close the recessionary gap