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-Refer to Figure 5

Question 50

Multiple Choice

-Refer to Figure 5.5. If the economy in the graph is at point Y<sub>0</sub>, the output gap would be eliminated in the short run by: A) an increase in AD. B) an increase in AS. C) a decrease in AD. D) an increase in the price level.
-Refer to Figure 5.5. If the economy in the graph is at point Y0, the output gap would be eliminated in the short run by:


A) an increase in AD.
B) an increase in AS.
C) a decrease in AD.
D) an increase in the price level.

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