The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4
-Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in
A)a recessionary output gap of 250.
B)a recessionary output gap of 450.
C)an inflationary output gap of 200.
D)an inflationary output gap of 300.
E)an inflationary output gap of 550.

Question

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.  FIGURE 24-4
-Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in
A)a recessionary output gap of 250. 
B)a recessionary output gap of 450. 
C)an inflationary output gap of 200. 
D)an inflationary output gap of 300. 
E)an inflationary output gap of 550.

Quizplus · Accepted Answer

The Answer of The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.  FIGURE 24-4
-Refer to Figure 24-4.The initial effect of the positive AS shock shown in the diagram results in
A)a recessionary output gap of 250. 
B)a recessionary output gap of 450. 
C)an inflationary output gap of 200. 
D)an inflationary output gap of 300. 
E)an inflationary output gap of 550.

The Diagram Below Shows an AD/AS Model for a Hypothetical