Suppose the AD curve and the SRAS curve intersect to the right of the LRAS curve.Which of the following is true?
A) The economy is in a recessionary gap.
B) The economy is in an inflationary gap.
C) The economy is in a long-run equilibrium.
D) This situation is actually impossible.
Correct Answer:
Verified
Q92: Q93: The structural unemployment rate is 1.5 percent,the Q94: Some economists believe the economy is self-regulating.What Q95: If the economy is in long-run equilibrium, Q96: If the current unemployment rate is equal Q98: If the economy is self-regulating and in Q99: If the current Real GDP is less Q100: A necessary condition for the economy to Q101: If the economy is self-regulating and current Q102: If the economy is self-regulating and current
A)
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