The elimination of an inflationary gap through the self adjusting properties of the AD/AS model would cause:
A) falling prices and falling employment.
B) rising prices and falling employment.
C) falling prices and rising employment.
D) rising prices and rising employment.

Question

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The Answer of The elimination of an inflationary gap through the self adjusting properties of the AD/AS model would cause:
A) falling prices and falling employment.
B) rising prices and falling employment.
C) falling prices and rising employment.
D) rising prices and rising employment.

The Elimination of an Inflationary Gap Through the Self Adjusting