Inflationary and recessionary gaps are closed by the economy's self-correcting adjustments mechanism that shift
A) the SRAS curve.
B) the AD curve.
C) the LRAS curve.
D) both the SRAS and the LRAS curves.
Correct Answer:
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Q117: Use the following to answer questions .
Exhibit:
Q118: During the recession of 2001, despite the
Q119: Use the following to answer questions.
Exhibit: The
Q120: In the short-run, an output gap occurs
Q121: Use the following to answer questions .
Exhibit:
Q123: An economy adjusts on its own to
Q124: To eliminate an inflationary gap, policy-makers may
Q125: Use the following to answer questions .
Exhibit:
Q126: Use the following to answer questions .
Exhibit:
Q127: Use the following to answer questions .
Exhibit:
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