-Before the shift of the aggregate demand curve from AD₀ to AD₁,the economy is facing a(n): A)recessionary gap of ef B)recessionary gap of de C)inflationary gap of cd D)inflationary gap of de E)state where there is no recessionary gap or inflationary gap

Question

Quizplus · Accepted Answer

Before the shift, the economy is experiencing a recessionary gap of de, indicating that the actual output is below the potential output.

-Before the Shift of the Aggregate Demand Curve from AD0

-Before the Shift of the Aggregate Demand Curve from AD₀